Money laundering is a massive problem for businesses of all sizes. Finding the right anti-money laundering software (AML software) can keep your business safe.
There are many different AML software providers, and it can be tricky to choose the right one for your business. This blog post will discuss six pitfalls to avoid while choosing AML software.
Not Researching Different AML Software Providers
There are many different AML software vendors out there, and it is essential to do your research to find the one that best fits your business needs.
One way to avoid this pitfall is by speaking with other businesses in your industry and seeing which AML software they are using. You can read online reviews of different providers to understand what others think of their products.
Another way to avoid this is by attending industry events, and trade shows to meet with different software vendors and see their products firsthand.
Make sure to take the time to find the right AML software for your business, as it is an important decision that will help you comply with regulations and keep your business safe.
Choosing an AML Software Provider That Is Not Reputable
An AML software company should be licensed by the Financial Crimes Enforcement Network (FinCEN) and be a member of the Association of Certified Anti-Money Laundering Specialists (ACAMS).
The company should have a good reputation in the industry, with positive customer reviews. Do your research on the company before signing any contracts.
FinCEN is a US government agency that works to prevent financial crime, and ACAMS is a professional membership organization for AML specialists.
ACAMS is a global leader in providing educational training and certification to individuals and organizations. You can read reviews of AML software providers on sites like Gartner and Forrester.
Not Understanding the Features of AML Software
Some of the essential features to check in the best trade surveillance software include:
–Transaction Monitoring: this is the primary function of any AML software, and it should be able to detect, investigate and report any anomalies in transactions.
–Risk Management: another essential feature to consider is the ability of the software to help you manage risks associated with your business. It should identify high-risk areas and provide you with the tools to mitigate those risks.
–Compliance: the software should also help you ensure compliance with all relevant regulations, including anti-money laundering (AML) and countering terrorism (CFT) regulations.
Choosing an AML Software Provider That Is Not Affordable
The total cost of ownership (TCO) of an AML software solution can vary greatly. Get quotes from several providers and compare the TCO, not just the upfront costs. When considering your budget, you should also factor in training, support, and maintenance costs.
Don’t choose an AML software solution out of your price range. It will be challenging to get the total value from the software if you can’t afford to properly maintain it or train your staff on how to use it.
Many companies offer financing options to make it easier to budget for an AML software solution. If you consider this option, read the fine print and understand all the terms and conditions before signing any agreements.
You also need to factor in compliance when choosing an AML software solution. The price of non-compliance can be significant, so be sure the software you choose can help you meet all your compliance obligations.
Not Getting a Demo of the AML Software Before Purchasing
It is crucial to get a BSA AML compliance software demo before purchasing it. It will allow you to see if the software is a good fit for your business and user-friendly.
Additionally, during the demo, you can ask questions about the software and clarify any features you are unsure about. Asking questions also shows the vendor that you are serious about using their software and are committed to making it work for your business. Purchasing AML software without getting a demo first is a mistake that can cost you time and money.
Failing to Update the AML Software Regularly
Lastly, one of the most common mistakes is updating the AML software regularly. Software updates are essential for patching any security vulnerabilities and ensuring that the latest changes in legislation are included.
Whether you are a small business or a large enterprise, it is essential to partner with an AML software provider that can offer you the right solution for your specific needs.