Preventing financial crimes remains a top priority for financial institutions, businesses, and law-enforcement agencies. These organizations typically rely on basic software to detect and investigate possible incidences of fraud, money-laundering, bribery, corruption, and other types of financial crimes.
However, the same institutions are also discovering the many shortcomings of depending on a piece of software with limited capabilities for financial crimes investigation purposes. In the past 10 years alone, financial regulatory bodies around the world have levied USD 36 billion in fines due to a lack of financial crime compliance. This has spurred banks, businesses, and other organizations that are subject to the review of these regulatory bodies to take a second look at the software that they use to detect and investigate financial irregularities.
What Do Many Basic Financial Crime Investigation Software Solutions Lack?
A 360-degree View
One of the key limitations of basic AML software is that it does not offer its users a 360-degree view of the organization’s data. This limited view prevents investigators from immediately spotting discrepancies in the system that can signal the occurrence of financial crimes. And because they are presented with incomplete data, the investigators are at an increased risk of coming up with incorrect conclusions.
Most basic financial crime investigation software solutions do not have automated case assignment and management functions, which is a huge drawback considering that process automation is now widely used in all types of compliance programs. Should the software detect possible financial crimes in the system, the managers still have to step in and manually categorize, prioritize, and assign cases to particular investigation teams.
Often, it’s not an option to change the workflow that comes with a basic financial crime detection software. Such a feature might work with a small organization, but it can be a significant disadvantage if the users need to adapt to regulatory or organizational changes. A rigid workflow may also not suit big organizations that adhere to specific policies for preventing financial crimes.
In the long run, organizations will save more if they choose a financial crime investigation solution that can grow with their needs and the size of their operation. Upgrading a basic software every time there’s a change in compliance rules is much more costly compared to choosing an adaptive financial compliance program in the first place.
These drawbacks are addressed in an enterprise case management solution, which presents a platform that financial crime case management teams can customize to meet the particular needs of the business and the investigations they are conducting. Such a solution offers the following benefits:
Find All the Details You Need for a Thorough AML Investigation Process on One Platform.
One of the main advantages of an enterprise-level AML investigation solution is having a single platform from which one can view all the resources needed to monitor and investigate financial crimes. A platform on this level should be able to consolidate external and internal data seamlessly, and it should also be able to support compliance investigations for different types of financial crimes. In turn, having an unrestricted view allows investigators to relate events and entities, compile in-depth information about persons or events of interest, and clarify obfuscated relationships between suspicious parties.
Detect Possible Financial Crimes and Conduct AML Investigations with the Help of Intuitive Tools.
Investigating AML and other types of financial crimes is a time-consuming job that deals with volumes of information. An enterprise case management solution can make this work easier and faster through the use of intuitive tools and process automation. These functions use sophisticated bots and tools that sift and score data from channels that are relevant to their investigation of a particular case. The scores assigned by these intuitive tools help AML case management teams determine if a particular detail should be included in their investigation or if it merits a case of its own.
Respond Immediately to Changing Market Needs and Trends.
A case management solution may have a highly customizable platform and specialized tools to help analyze and prioritize data, but this doesn’t mean that it’s difficult or costly to upgrade. One of the hallmarks of a good enterprise-level case management solution is that it can respond to the ever-changing rules and regulations implemented by regulatory bodies without necessarily increasing costs for its users. It should be robust enough to stay a step ahead of financial criminals. At the same time, it should also be able to accommodate changes in how legitimate financial institutions and companies conduct business.
Investing in an enterprise-level case management solution will only benefit your business in the long run, as it can be customized according to the changing needs of your business and investigation teams. With it, you’re a step closer to ensuring that your organization is safe from sanctions and that your business is protected from financial crimes.