Advantages of APIs for AML Compliance

Blog / Advantages of APIs for AML Compliance

An investment bank paid 574 million dollars as an AML fine for criminal activities of their customers engaged in via the company in 2021.  Unfortunately, this is only one piece of the total picture of today’s AML situation. In 2021, non-compliance fines reached almost 5,35bn dollars. The penalties and the number of individuals on the lists are growing daily. Each year, the amount of money laundered corresponds to  2-5% of global GDP conjecturally, and this does not refer to the entire cost. The market size is also getting larger with new firms, especially FinTechs. Only FCA supervises 22.000 companies in the UK to prevent money laundering and financial crime. 

In this decade, new players emerged in the market during the digitalization of our world, such as payment systems, cryptocurrency, NFT, blockchain, etc. Those are the more vulnerable players because of the lack of regulations that they must comply with and 100% unique processes open to cyber-attacks.

Fighting financial crimes and AML regulations are obliged to escalate with these developments to catch illicit activities. Companies proceeding with manual operations will not survive under these circumstances a few years later. On the other hand, AML software solutions are developed to combat attempts and support firms in every step. It is predicted that the global AML solutions market will grow to 4.5 billion dollars by 2025. The market witnessed how Artificial Intelligence technologies have been integrated into the solutions recently. Today it became a well-known fact that software solutions with last technological developments like AI, API, or machine learning create an enormous difference in scanning and monitoring processes for AML compliance.

Check out our website to discover more insights

2021 AML Annual Report

2021 has been an active year in the prevention of money laundering, with many countries enacting new or updating their regulations on AML. In 2021, countries took regulatory steps, especially on crypto, and awareness of this issue increased.


What Does API Mean?

Imagine a mechanism tackling all complexity from coding and a tool presenting the components usefully. This mechanism is an Application Programming Interface (API). API provides users to integrate different systems and use them before learning every detail of that specific system and its qualifications. Like an autonomous user guide, APIs know a system’s requirements on behalf of its user and imply necessary steps according to basic commands. Many developed services design several open or private APIs to offer access to their skills. Usually, the access provided with an API is limited and records the logs; however, it is still beneficial and has fundamental necessities.

There are different kinds of APIs, such as Open API, Internal API, Partner API, and Composite API.

Open API: This type is known as Public API with no limitation for developers and focuses on external data

Internal API: It is a special kind used for internal processes of companies or teams, has confidential and sensitive information and access to resources.

Partner API: This works between open and internal APIs; generally prepared for strategic co-workers of a team or company and partners. It is available for them but more limited than open APIs

Composite API: It is used to compose several APIs and different data to provide access to more services via a single point.




APIs offer many advantages for both administers and users:

Accelerate the integration processes for different service providers working together

Increase the availability and access of a product or service

Increase the preferability of a brand

Reduce the costs

Offer ready-to-use tools for software providers

Those and more will be covered in detailly in the following headings of the article.


AML Compliance Software Sharpened with APIs

Because AML compliance procedure and its continuity is painful enough for all companies, opportunities having the capability to support processes should be considered and used if it is possible. While the regulations and compliance programs are already challenging, there is no need to complicate the work by trying to do it with old methods.

The transformation starts with giving up the manual management of AML compliance and selecting the best software for your systems and needs. AML compliance officers can scan names and transactions within minutes if they have suitable software. Also, thanks to them, there is no need to review each name or monitor every action. They skip the standard ones and only investigate activities detected as risky and even high-risky regarding their company.

Using the software is a must today, but using the right one will be determined as a choice. Some of them are strengthened with machine learning, AI, and APIs to combat money laundering more effectively. Those options make work easier and faster for employees and provide more security for the company.


Benefits of APIs

After recent technological developments, not only compliance processes but also many other steps have become easier to succeed. It expedites a series of actions not only for businesses but also for customers. For example, an API enables a bank to get information from its customer in minutes with no need to have a customer representative or a branch. On the other side, a person can complete all steps for being a new client of a bank with a smartphone. He can share personal ID information safely and confirm his information by using a facial recognition API on his own couch.

Most of the big firms in the finance sector have been using software systems for compliance and appreciate their benefits. Developments in APIs and their usage took this a step further. Today, it is a leverage for tackling money laundering and any other type of financial crime attempts. The advantages can be listed as follows:

Establishing an in-house system for AML compliance policy can be a struggle for most companies, even with an IT department. Software with APIs can easily connect to any firm’s system and starts to work within hours.

Having a ready system with APIs reduces the cost of development and setting processes

It is impossible to check every transaction as a person. Connecting a scanning and monitoring program with API reduces human oversights.

AML compliance team can focus on alerts and risky actions by eliminating others with software. So, it reduces the effort of processes.

It supports customer onboarding and Know Your Customer (KYC) procedures. In a shorter time, you can get all the information that regulations enforce and provide a better customer experience.

There are more than one rule set, authority, and sanction in a single jurisdiction. It helps to trace all different systems by connecting them to a solution.

If there is a need to share your data, it enables you to do it quickly. Especially some of them can integrate firms to do systems of local authorities directly to report.


Sanction Scanner AML Solutions with APIs

Do you still struggle with AML Compliance? Sanction Scanner is here for you and your company to support AML Compliance with its solutions. Our products are designed to combat money laundering from the beginning to the end of your program. Integration with Sanction Scanner software is easy, fast, and secure with APIs regardless of location, language, or currency.


Sanction Scanner Solutions to Comply with AML Regulations 

It might be challenging to comply with AML regulations for companies. Sanction Scanner offers two solutions strengthened with APIs that make all processes easier, faster and more sustainable. 

AML Name Screening 

Scan customers in over 3000 Global Sanction Lists, PEPs List and Adverse Media, updated in 15 minutes. 

AML Transaction Monitoring 

Monitor transactions in real-time to detect, stop and investigate suspicious transactions. 


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