Anti-Money Laundering Software – A Global Solution to a Global Problem

 

Money laundering is a growing global issue that is heavily affecting the world’s economy and its security. It refers to the illegal activities used to make illicitly acquired funds appear legal and transparent. It is done so that criminals can transfer money through the world freely, without fearing that the funds will be traced to their activities or that they will be confiscated by authorities.

 

 

Money laundering, in turn, leads to more corruption in financial systems, bringing more drug-related crimes and illegal activities in society, and providing a solid base for terrorist activities and training. Thus, these advancements in criminal activities call for the need for resources to combat financial crime. Anti-money laundering (AML) software is one such resource. It’s an important tool for legal and financial institutions all over the world to track, investigate, and report transactions which are of a suspicious nature to financial regulatory authorities.

 

The anti-money laundering software market is experiencing a robust growth in recent years. Driving it are the factors such as growing cases of money laundering, increased AML regulatory requirements, and growing IT expenditures among banks. According to Allied Market Research, the AML software market is expected to reach $2,717.0 million by 2025, registering a CAGR of 15.2% from 2018 to 2025.

 

 

 

Owing to the rise in money laundering activities worldwide, several firms and institutions are coming up with new innovations in AML software tools. For instance, Hummingbird, a platform for managing AML operations, recently raised $3 million in order to improvise its anti-money laundering. Danske Bank, a bank based in Denmark, is improving its anti-money laundering software by using artificial intelligence and machine learning.

 

 

Hummingbird Raises $3 million to Enhance AML

In October ’18, With support from Homebrew, Omidyar Network, TTV Capital, and Designer Fund. Hummingbird raised a sum of $3 million to bring agility and intelligence in AML for banks, cryptocurrency companies, lenders, marketplaces, and other financial institutions who struggle to keep up with AML issues. Hummingbird uses machine learning and provides deep investigative capabilities to allow investigators to fight financial crime. The company’s platform can be set up in minutes and can be easily deployed in parallel to existing case management workflows. It requires no integration and has modern user-friendly APIs for transferring data to and from the platform. Hummingbird also offers insights into investigation issues and abilities such as interactive pattern visualization, time-sequence narratives of customer behaviors, and much more.

 

Danske Bank Invests in AML Systems

The illicit transactions that got exposed at a subsidiary of Danske Bank in Estonia made the parent bank to improvise its anti-money laundering (AML) detection and reporting systems. The transaction-focused AML software failed to identify accounts, money transfer divergence issues, and anomalies at the Tallinn branch. Therefore, the parent bank is set to upgrade its core AML systems by introducing improved layers of IT security, including the use of machine learning and artificial intelligence (AI) to screen and track new customers. With this, the software will be capable of exposing abnormalities of millions of transactions and delivering early warning risk analysis updates in real time. The strengthening of the AML systems will also help the bank curb financial risk, restore its market reputation, and retain customers.

 

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About the Author

Sharmistha Sarkar has always had a keen interest in reading and writing. Though an engineering graduate, she forayed into the field of writing due to her love for words and the urge to do something different. Allied Market Research has given her the chance to gain knowledge about different subjects as a senior content writer.

 

 

 

 

 

 

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