AML Screening and Anti-Fraud Monitoring Process

AML (Anti-Money Laundering) screening and anti-fraud monitoring are essential components of financial crime prevention strategies. These processes help businesses and financial institutions detect and mitigate risks associated with money laundering, fraud, and other illicit financial activities. Effective AML and fraud monitoring ensures compliance with regulatory requirements while protecting businesses from reputational and financial harm.

Resonare provides an advanced compliance platform that streamlines AML screening and fraud detection through:

  • Real-time AML database screening against global watchlists and blacklists.
  • Automated transaction monitoring to detect suspicious activities.
  • Customizable risk assessment models for fraud detection.
  • Seamless integration with regulatory reporting frameworks.
  • Secure data encryption for compliance and audit purposes.

Explore Resonare’s Step-by-Step Approach to the AML Screening Process

1. Collect and Verify Customer Information

Before onboarding a customer, businesses must conduct Customer Due Diligence (CDD) by collecting and verifying essential information:

  • Full name and aliases
  • Date of birth
  • Nationality and residence details
  • Government-issued identification (passport, driver’s license, national ID)
  • Business affiliations and financial background

For high-risk customers, Enhanced Due Diligence (EDD) may be required, which involves:

  • In-depth background checks
  • Source of funds and wealth
  • Additional verification of business dealings
  • Close monitoring of financial activities
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2. Screen Against AML Watchlists

After collecting customer data, Resonare’s AML system screens individuals and entities against global AML watchlists, including:

  • Financial Action Task Force (FATF) high-risk countries list
  • Office of Foreign Assets Control (OFAC) list
  • United Nations Security Council (UNSC) sanctions list
  • European Union (EU) and UK blacklists
  • Interpol and law enforcement records
  • Politically Exposed Persons (PEP) databases

If a match is found, further investigation is conducted to determine the level of risk.

3. Risk-Based Analysis and Transaction Monitoring

Not all flagged individuals or transactions pose the same level of risk. Businesses use risk-based assessments to:

  • Evaluate transaction history and frequency.
  • Identify high-risk jurisdictions associated with transactions.
  • Detect patterns of structuring, layering, or integration (common money laundering techniques).
  • Analyze business relationships and fund sources for inconsistencies.

Resonare’s automated fraud detection system monitors transactions in real-time to identify:

  • Unusual transaction amounts, frequencies, or locations.
  • Rapid movements of funds between accounts.
  • Transactions involving high-risk countries or industries.

Sudden changes in customer behavior.

4. Apply Enhanced Due Diligence (EDD) for High-Risk Cases

For customers or transactions identified as high-risk, additional AML and fraud prevention measures may include:

  • Manual case review by compliance officers.
  • Additional identity verification checks.
  • Transaction freezing or delays for further investigation.
  • Requirement for additional documentation or justifications.

5. Report Suspicious Activity

If fraudulent or suspicious activity is detected, Resonare help for institutions file a Suspicious Activity Report (SAR) or Suspicious Transaction Report (STR).

6. Continuous Monitoring and Compliance Updates

AML screening and anti-fraud monitoring are ongoing processes. With Resonare’s platform, businesses can:

  • Conduct regular re-screening of existing customers against updated watchlists.
  • Monitor and analyze transaction trends to identify emerging fraud risks.
  • Stay updated on evolving financial crime regulations and compliance obligations.

By integrating Resonare’s AML & Anti-Fraud monitoring solutions, businesses can effectively detect, prevent, and report financial crime while ensuring regulatory compliance and reducing exposure to legal