Have you ever considered customers’ difficulties while monitoring, screening, and during the AML case management process?
It is obvious that customers have to endure delays and problems completing their transactions due to tough and lengthy AML compliance regulations. However, customer satisfaction has always been a first priority of every organization. So, how can businesses balance this compliance program with customer satisfaction? This is an interesting debate that needs to be discussed at a higher level.
Here, we will try to provide our readers with a solution that balances the AML compliance program and customer satisfaction.
After the First FATF recommendation on an AML compliance program, many regulatory bodies across the world have made it obligatory for businesses and financial institutions to collect their customer information and apply comprehensive AML checks before onboarding them. Among all these checks, businesses are also asked to make a risk profile report. But during all these checks, screening, and monitoring processes, customers have to suffer.
We understand the importance of complying with AML regulations; however, customers’ suffering can’t be set aside. This writing will particularly focus on these two factors, why an AML compliance program is necessary, and what measures could be taken to balance these two.
AML Case Management System and its Significance for Organizations
Maintaining the global financial system is quite challenging for all the stakeholders owing to the evolving technique of financial crimes. Seeing such a methodology in place increases the importance of AML compliance programs set by the different regulatory bodies. The following are the major reasons why AML regulations are compulsory for business.
- Combat Criminal Activities
Money laundering itself is a bigger crime. However, it is directly related to many other crimes that damage our economies, societies, and ecosystems in many ways. People who obtain money from criminal activities like corruption, bribery, fraud, embezzlement, and other illegal activities opt for the money laundering technique to appear legal. AML compliance programs detect and prevent such activities and make daunts to the overall hierarchy of criminal activities.
- Fight against Terrorist Financing
Terrorist organizations try to make links with criminal individuals to use their illegally obtained assets as funds for their organizations. The channel that is used for such transactions is banks or other financial institutions. With AML compliance in place, such transactions could be identified and prevented, benefiting national and international security.
- Protect Financial Institutions
Financial institutions are the battlefield of all the wars played between criminals and Regulatory bodies’ compliance programs. A minor misrepresentation of such compliance can lead to heavy damage to the institution’s reputation. AML regulations can protect them from being exposed to such activities and facing compliance action against them.
Difficulties User often have to face while Handling AML cases.
- Lengthy Verification Procedure
The comprehensive and extended verification of customer transactions, despite being false positives, leads to significant transactions. That delay also occurs at the time of bank account opening, which frustrates the customer. Above all, providing extensive documentation is also time-consuming and headache-inducing from the customer’s point of view.
- Higher Rate of False Positive
Imagine your potential client’s transactions are detected during the monitoring process. Would it be beneficial for your organization? Not at all. The delay and the trouble he will face will force him to think again about whether or not to work with you.
- Privacy and Data Security
Asking customers to provide confidential and detailed information can make them insecure about the personal information and data they provide to the organization. They fear that the data could be used for identity theft or misuse.
Strategies for Balancing AML compliance and customer Experience
- Implement advanced AML Technology.
With advanced technology like AI and ML, organizations can streamline the AML process by reducing the burden on not only customers but also the compliance team. An automated system like the AML Watcher is capable of investigating customer information quite quickly, which minimizes customer delays.
- Customer Segmentation
When you have all the information about your customer, a business can segment the customer using data analytics. AML efforts will be applied based on an individual’s risk profile. Low-risk customers should undergo simple checks, while customers who pose serious threats must receive more detailed security.
- Enhanced Customer Communication
Customers are often not aware of the AML process, and when they instantly have to face the long AML process, they are devastated. So, clear and transparent communication is essential to keep customers informed about the AML case management process.
One such way is that with the Automated AML solution, your business can send the customer the details of the automated AML Process and the required action, which can help manage their expectations and reduce anxiety.
Can AML case management software achieve such a balance?
Yes, the advanced and automated AML case management solution can make a balance good for both the organization and the customer expectations.AML Watcher, the best screening and case management solution provider, offers you the best solutions to your needs. To know their success stories, visit its website or meet with their representative for further information about the tool.
