Today, there is a lot of change in the living style of people. The society does not remain the same forever. Corruption and fraud are burgeoning like cancer. People are searching for reasons to support their unethical works. As the competition is increasing day by day, people find it difficult to earn money in right ways. To satisfy their unreasonable desires, people are resorting to unfair means to make money. On the other hand, people are using inordinate amount of money to carry out terrorist activities to disturb the peace on the planet. There is no institution which is not a victim of the above dangerous practices. This problem is more threatening to financial institutions as they directly deal with money. People save money in banks to use it for future needs, but in many cases they cannot draw their money in times of their need because of various problems. The major reason for such an abominable situation is the inability of financial institutions to prevent malicious acts.
What should be done by the financial institutions is a big question and often baffling. This simple answer is to have a strong Anti Money Laundering Platform to curb this menace. The number of customers differs from one institution to the other based on its reputation. Some have very small number of customers and branches while some others have a very large customer base and many branches operating in different localities. The enormous size of the client base poses a very big challenge to the financial institutions. It is very difficult to monitor all the functions with the existing system. All the financial institutions are governed by government regulations and they have to strictly adhere to the compliance norms.
It is exactly at this point, AML platform comes into picture with its promise to solve this problem. The world of technology is highly dynamic and everyday a new technology is added to the existing technical stack. Earlier, the institutions tried to prevent the misuse of illegal money by manual participation, which was very ineffective in its execution. The managements of the financial institutions considered this problem seriously and looked for alternative methods. They tried to avoid these money related frauds by using technology, which was a welcome sign. The adoption of technology could not produce optimum results because the criminals were getting updated with latest technologies and the most unpleasant result of it was that the problem remained unsolved. So, these financial institutions have realized the importance of a comprehensive AML platform.
After so many fraudulent incidents related to money, many financial institutions have started using AML software to prevent these incidents of fraud. Further, the most important point to be observed by all the people managing these financial institutions is the necessity to have an expert team to work on AML. Mostly, banks and other financial institutions are suffering from low manpower. Specific teams are needed to work on the AML platform, which is the most important segment of any financial institution.
Agile and innovative strategies may help to counter the unethical acts of people. Regular vigilance on suspicious accounts, timeline of operations, irregularities in payment, transfer of huge amounts, regular change in the address, proper due diligence, and reduction of nepotism are some points to be considered to safeguard financial institutions form fraudulent activities.
The Financial Institutions have definitely understood the importance of a robust AML platform to offer better services to people by safeguarding their money and effort. Spar Information Systems has an expert team with profound experience in AML software. We are willing to be a part of your transformation.