AML (Anti-Money Laundering) is a platform and the database-independent solution developed to analyze and report suspicious financial transactions. In the fight against money laundering and combatting terrorism financing, Anti-Money Laundering AML program is a safe, cost-effective solution with its supporting structure of national and international standards and rules.

The Anti-Money Laundering program is a solution developed to detect, analyze, and report suspicious financial transactions. Illegal financial gains such as money laundering, which started to become widespread in the 1960s and afterward, necessitated such a program.

AML (Anti-Money Laundering) Program has been developed for economic and financial justice and to combat money laundering and financing of terrorism. Globally, most of the developed and developing countries legislating its own regulations on financial crimes besides conducting the regulations required by international authorities. The most important factor affecting the success of this program, which was developed within the scope of combating financial crimes, is that it offers a risk-based approach to the customer.

The Importance of AML Program in Combating Financial Crimes

Anti-Money Laundering (AML) program has been developed with the aim of making it possible to monitor cross border transactions in conduct with regulatory standards of European Union (EU) and USA. AML Program aims to detect and suspend the suspicious financial movements, examine them in detail, and make the decision regarding the transaction. If the final result does not contain any problems due to false positive suspension, comments are requested for the decision. After confirmation, the transaction process is allowed to continue. Besides, the factors that exist and make the Anti-Money Laundering Compliance program important can be handled as follows:

1. Risk Analysis Tool

Risk factors are analyzed with AML process, which is applied within the scope of Anti-Money Laundering regulations. However, the identified risk is classified and scored according to the complex measures that includes demography, geographical location, income level and occupation of the customer. Then, these measures are taken into consideration in order to score risk of the customer on a regular basis. When considered within the scope of “Risk Analysis Tool” in the compliance process, special studies are carried out in financial branches and units known to be located in risky areas. In this way, Risk Analysis Tool prevents any malicious financial activity when applied effectively.

2. Reputation Risk

Financial institutions are critical organizations that have reputation risk. Involvement in the money laundering or other financial crimes in these institutions will bring about serious damage to the reputation of the financial institution besides monetary penalty. The Anti Money Laundering AML program can defer such incidents by continuous and effective compliance practices in financial institutions to preserve reputation and reliability.

3. Customer Identification with AML Program

AML program is one of the essential methods used in the fight against financial crimes, customers are carefully observed. The onboarding process that customers are involved in from the first moment they step into the institution is managed carefully, and classification is made within this framework. After the customer is classified into various risk categories, each customer is assigned to a risk score for measuring potential feature risks for any account activities in the future. Therefore, Know Your Customer KYC process should be applied during customer onboarding as the part of the initial step of an effective AML Program.