Top Tips for Choosing a AML Compliance Dashboard

In the following, we will explore how a good dashboard can speed up your Anti-Money Laundering work. By providing a centralized view of an organization’s AML compliance efforts, an AML compliance dashboard can help identify areas of risk and enable proactive risk management.

24/04/2023

Why is AML important?

AML (Anti-Money Laundering) is important for several reasons:

Prevention of criminal activities: AML regulations are put in place to prevent criminals from using the financial system to launder money obtained through illegal activities such as drug trafficking, terrorism, fraud, and corruption. By detecting and preventing money laundering, AML regulations help to disrupt criminal activities and prevent the profits from being used to fund further criminal activities.
Protection of financial institutions: Money laundering can damage the reputation of financial institutions, leading to loss of business and customers. AML regulations help to protect financial institutions from reputational and financial damage by ensuring that they are not unwittingly facilitating money laundering activities.
Compliance with laws and regulations: Many countries have laws and regulations in place that require financial institutions to implement AML programs to prevent money laundering. Compliance with these laws is important to avoid penalties, fines, and legal consequences.
Safeguarding the financial system: AML regulations help to safeguard the stability and integrity of the financial system by ensuring that the system is not used for criminal activities. By preventing money laundering, AML regulations help to maintain public trust and confidence in the financial system.

Overall, AML is important for preventing criminal activities, protecting financial institutions, ensuring compliance with laws and regulations, and safeguarding the financial system.

How has AML changed? What are the most relevant AML laws to consider, in EU and the US respectively?

AML laws and regulations have evolved over time to adapt to changing financial systems and emerging threats. In both the EU and the US, there have been significant changes to AML laws and regulations in recent years.

In the EU, the most relevant AML law is the 5th EU AML Directive, which was adopted in 2018 and came into force in January 2020. The 5th EU AML Directive strengthens the EU’s AML framework by introducing new requirements for customer due diligence, beneficial ownership, and enhanced risk assessments. The directive also extends the scope of AML obligations to include virtual currencies, prepaid cards, and art dealers.

In the US, the most relevant AML law is the Bank Secrecy Act (BSA) of 1970, which has been amended several times over the years. The BSA requires financial institutions to implement AML programs, report certain transactions to the government, and maintain records of transactions. The BSA also created the Financial Crimes Enforcement Network (FinCEN), which is responsible for enforcing AML regulations in the US. In addition to the BSA, there are other relevant AML laws in the US, including the USA PATRIOT Act, which was passed in the aftermath of the September 11 attacks and strengthened AML requirements in the US.

Both the EU and the US have also implemented sanctions regimes, which are designed to prevent targeted individuals and entities from accessing the financial system. The EU has the Common Foreign and Security Policy (CFSP) sanctions regime, while the US has the Office of Foreign Assets Control (OFAC) sanctions regime.

What exactly is an AML compliance dashboard?

An AML compliance dashboard is a tool that allows organizations to monitor and manage their AML compliance efforts. It provides a visual representation of key AML compliance metrics and helps organizations track their progress towards meeting AML regulatory requirements. A dashboard typically displays real-time data and can be customized to suit the specific needs of an organization.

An AML compliance dashboard can include various components, such as:

Compliance KPIs: Key Performance Indicators (KPIs) that provide a snapshot of an organization’s compliance status. Examples include the number of Suspicious Activity Reports (SARs) filed, the number of high-risk customers identified, and the percentage of staff trained in AML compliance.
Risk Assessment Metrics: Information related to an organization’s risk assessment process, such as the number of customers or transactions assessed for risk, and the results of risk assessments.
Transaction Monitoring Metrics: Data related to an organization’s transaction monitoring efforts, such as the number of transactions flagged for further review, the number of false positives, and the results of investigations.
Training Metrics: Information related to employee training, such as the number of staff trained in AML compliance, the percentage of staff who have completed training, and the results of training assessments.

By providing a centralized view of an organization’s AML compliance efforts, an AML compliance dashboard can help identify areas of risk and enable proactive risk management. It can also help organizations demonstrate their compliance efforts to regulators and stakeholders.

What should you consider when choosing an AML compliance dashboard provider?

When choosing an AML compliance dashboard provider, there are several factors that should be considered:

Regulatory compliance: The provider should have a thorough understanding of AML regulations and compliance requirements, and their dashboard should be designed to meet these requirements. It is important to ensure that the provider is up-to-date with any changes in regulations and can make updates to their dashboard accordingly.
Customizability: The dashboard should be customizable to meet the specific needs of your organization. This includes the ability to tailor the dashboard to display the metrics that are most relevant to your organization’s AML compliance efforts.
Integration: The dashboard should be able to integrate with your organization’s existing systems and software, such as your AML software, risk assessment tools, and supporting transaction monitoring systems. This allows for a more comprehensive view of your compliance efforts and can help streamline processes.
User-friendliness: The dashboard should be easy to use and navigate, with intuitive interfaces and clear visualizations. This is important to ensure that staff can quickly and easily understand compliance metrics and take appropriate action where necessary.
Security: The provider should have robust security measures in place to protect your organization’s data, including encryption, data backups, and access controls. Rigid GDPR compliance is a must.
Support and training: The provider should offer comprehensive support and training to ensure that your organization can effectively use the dashboard and make the most of its features.
Reputation: It is important to consider the reputation of the provider, including their experience in the industry and their track record in providing reliable and effective AML compliance solutions.

How can Kyros AML Compliance Dashboard assist?

Kyros is a complete KYC and AML cloud-based dashboard solution, with support for more than 200 countries. Kyros supports you in onboarding and monitoring your customers, working in conjunction with your regular backoffice.

Kyros analyzes the data and enriches it with supplemental information from premium third-party sources, including international PEP and sanction lists. You can also integrate Kyros-hosted self declaration forms into your onboarding flow.

Advanced AI analyzes the enriched data and automatically risk-scores users based on individualized risk parameters that you control.

You can use Kyros AML Compliance Dashboard on its own, or as an integrated part of your backoffice. Data can be exchanged seamlessly back and forth. API webhooks allow for automated back office decision-making.

Discover why more and more AML professionals are turning to Kyros’ AML dashboard – contact us today.