The Challenges Faced by AML Officers

Financial crimes such as money laundering and terrorist financing pose greater threats for companies every year. Regulators are implementing new regulations to prevent these risks and threats. These regulations increase the responsibilities and obligations of companies in compliance processes. Companies must pay more attention to compliance processes today. Because companies that do not meet their obligations are punished with heavy administrative and fines by regulators.


Compliance processes of companies are managed by compliance departments. Compliance officers have the biggest responsibility for companies to ensure AML compliance. The main responsibilities of the AML compliance officer are the creation of the AML compliance program, the implementation of the AML compliance program, reporting of suspicious transactions and monitoring of AML regulations.


Compliance officers or AML compliance officers face some challenges in anti-money laundering compliance processes. In this article, we will share some of the challenges faced by AML compliance officers.


Insufficiency of Information Technology Systems


We live in a digital age. With the development of technology, money laundering techniques have also changed. The traditional and manual methods used to combat financial crimes have now lost their function. That's why compliance officers need technological systems to meet their AML obligations. One of the challenges faced by AML compliance officers is that companies do not use advanced information technology systems for their compliance processes.


Unfortunately, there are still some small and medium companies that do not use AML software in their compliance processes. AML checks begin in the customer onboarding process. It is very dangerous to risk assessment of new and existing customers with manual methods. AML compliance officers cannot detect risks using manual methods. In addition, financial institutions mediate many financial transactions within a day. It is impossible to manually control this large number of financial transactions. Therefore, financial institutions need transaction monitoring software.


Customer satisfaction is mandatory for financial institutions. Customers prefer fast, reliable and easy financial service providers. Companies using advanced information technology systems for AML compliance processes can fulfill their AML obligations within seconds. Thus, AML obligations are meet without delay in customer transactions.


False-Positives and False-Negatives


The concepts of false positives and false negatives are used too much in compliance departments. Because false positives and false negatives are really headaches for compliance departments. The false positive is that usual customer activity is detected as a suspicious transaction. False-negatives are financial crimes that cannot be detected. False positives are both a waste of time and negatively affect the customer experience. As a result of false negatives, firms may face regulatory penalties. So false positives and false negatives are very important for companies. In companies that do not have an effective AML compliance program, the number of false positives and false negatives is quite high.


Increased Governance


Cross-border financial services are subject to AML obligations in the regions they serve. AML obligations differ from region to region. Therefore, the AML compliance officer has to follow the AML regulations in the regions they serve. AML policies of these financial service providers have to cover AML regulations in the regions they serve. Therefore, financial institutions serving in very large areas should employ more than one AML compliance officer. It can be difficult for a single AML compliance officer to carry out the entire compliance process alone.


AML Software Costs


One of the problems that small and medium-sized institutions face is limited budgets. In the past, small and medium-sized businesses could not use AML software due to the high cost of AML software. Fixed license costs and high installation fees made small and medium-sized companies vulnerable to financial institutions.



One of the missions of Sanction Scanner is "Providing AML solutions suitable for the budget of any size business". Therefore, Sanction Scanner enables small and medium-sized companies to use AML software without fixed license fees and installation costs. Businesses pay only for the usage they need.


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