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By: Julia Nasy

AML Software

12 mins read
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Today, Anti-Money Laundering (AML) solutions are more relevant than ever. An increasing number of financial crimes worldwide stays among the driving factors of AML software market growth. Integrating artificial intelligence, machine learning, advanced analytics, and other technologies take AML products to a new level. Due to them, companies have the opportunity to combat financial crime successfully and avoid the negative impacts of non-compliance.

Also, there is a tendency when regional financial institutions collaborate with Anti-Money Laundering software providers to deploy custom solutions. Certainly, the custom approach allows for avoiding many cons of the future product, like difficulties of adoption across enterprises. Developing an AML compliance solution is best left to professionals, such as Limestone Digital, with long-term expertise in creating successful solutions for the fintech industry. Read on to discover more about Anti Money Laundering software to stay compliant and fight financial crime on the local and global scale.

Key Features of AML Software

Practical applications of Anti-Money Laundering APIs may be diverse, depending on company needs. And each platform offers its own unique set of functions. AML regulations recommend not relying on a single product. It is much better to collect your own toolkit from different trusted vendors. Here is the list of features you should look for in any AML software you consider for your business.

Identity Verification

Know Your Customer (KYC) is an important component of regulatory compliance. Financial institutions must know their customers are who they say they are to achieve AML compliance. The identity verification process can vary from company to company, depending on business needs. But most Anti-Money Laundering solutions collect and verify standard personal identifiable information (PII) such as name, birthdate, address, telephone number, social security number, driver’s license, bank statement, etc.

Today, AI-based products also offer robust biometric tools. Facial authentication allows fast checking of whether the person presenting the identity document is the same individual. Liveness detection helps establish genuine customer presence and deter imposters. This is especially important at the time of the massive use of 3D masks and deepfake technology by fraudsters.


AML compliance requires firms to develop internal anti-money laundering practices and policies. This means that banks and other financial institutions must do the following:

  • appoint a compliance officer responsible for ensuring the company’s compliance with regulatory requirements;
  • develop internal policies;
  • create an AML training program for staff;
  • test and audit compliance programs with independent auditors on a regular basis.

And for this, companies need a tool that compiles key data necessary for an audit, and not only. These data management capabilities of Anti-Money Laundering software also can generate reports and keep detailed records of any manual actions, such as employee training, scheduled audits, and submitted reports.

Name Screening

New and existing customers need to be screened against several relevant lists. The procedure is carried out at the onboarding stage and specific intervals. Such checks are the basis for regulatory compliance. They help identify the risks clients may pose and prevent potential financial crime. Due to this, financial institutions can stop doing business with blocked individuals and legal entities in time. There are several types of lists that companies may use for name-screening purposes, including:

  • sanction lists;
  • politically exposed person (PEP) lists;
  • watch lists;
  • adverse media.

Transaction Monitoring

AML regulations require financial institutions to monitor transactions throughout the customer lifecycle. The scanning process is based on several characteristics, such as customer and beneficiary identities, amount, country of origin, and destination. This allows financial institutions to assess if collected information matches the business’s current understanding of the customer.

Monitoring transactions also help to identify cases of identity theft and suspicious activity. For example, when fraudsters try to make a purchase abroad at a moment when the account holder did not travel outside the country. The main goal of transaction screening is to detect instances of potential money laundering and report them to authorities.

However, transaction monitoring systems may face false positives. This is a common challenge for Anti-Money Laundering solutions. False positive alerts occur when the AML tool warns of suspicious transactions that are actually legitimate ones. They can play into the hands of money launderers and become a headache for financial institutions.

False positives are costly and time-consuming, as they require human intervention to review. These alarms can occur due to several reasons. The first is incomplete or outdated data of AML transaction monitoring systems. The second is unusual but legitimate transactions. For example, a bank customer makes a large cash deposit, which is still part of a legitimate business transaction. And if the system is not set up to identify this type of activity or is overly sensitive, it may generate a false positive alert. The third cause is a lack of context.

Case Management

Detection of suspicious activity is just the first step of the AML compliance process. Then, a financial institution must review, investigate and determine if a transaction is a financial crime. Case management systems automatically collect and display necessary data in one place so compliance team members can evaluate the case and make a decision. Without them, analysts must do it all manually. Thus, this feature contributes to more rapid case resolution, saving time, money, and resources.


Anti-Money Laundering (AML) rules require firms to file suspicious activity reports (SARs) when customers’ anomalous patterns indicate money laundering, terrorist financing, fraud, tax evasion, and other financial crimes. And that means that AML software should seamlessly produce relevant data to support the report preparation and submission. An application should also support the function of creating in-depth reports to provide regulators with credible information on the actual organization’s compliance efforts.

Other Aspects of AML Compliance Solutions

Selection of the optimal software also depends on numerous factors, such as a specific industry, company size, and complexity, geographic operations, etc. Below are several aspects to consider when evaluating an AML Solution.

  • Scalability. This is one of the key needs of banks, credit unions, loan associations, insurance agencies, and other financial institutions. AML API should be able to scale along with your business and an ever-growing number of customers. It should handle the growing workload and evolving regulatory requirements.
  • Flexibility and customization. Look for a compliance solution with a customizable rule engine. For successful implementation, it needs the ability to adapt to your unique risk profile and regulatory environment.
  • Integration. Anti-Money Laundering solutions must integrate seamlessly with case management systems, CRM, data sources, and other existing systems. In this case, you will reduce disruption and increase data analysis capabilities.
  • Convenience and ease. Compliance management software should be user-friendly. Due to well-designed interface solutions can be easily integrated into business processes.
  • Vendor Expertise. Choose a business partner with a good reputation and deep expertise in the AML compliance space to receive an effective solution. Limestone Digital has 60+ successful projects in its portfolio. And customer trust is confirmed by statistics – 90% of company clients return for a new product for their business.

Anti-Money Laundering Software Development

The global KYC/AML product market is full of turnkey solutions software giants provide. The first on the list are Dow Jones Risk & Compliance, Clear View KYC, Token of Trust, ComplyCube, Oracle Financial Crime and Compliance Management, iComply, SumSub, and others. Among with the AML software market development, there is also a significant growth in banks’ interest in custom solutions.

Outsourcing is the best option for those looking for cost-effective, time-saving, and business-oriented AML software development. And companies from Eastern Europe are leaders in this area. Software developers from this region compete successfully in the global market due to serious advantages. Moreover, their attitude toward management and teamwork are similar to Western colleagues and partners.

  • Qualified specialists. Eastern European developers receive proper technical education. Local IT communities support talented engineers and help to develop their skills. No wonder they are often on the list of top tech experts in the world.
  • Affordable rates for Anti-Money Laundering solutions. Pricing is one of the key advantages of cooperation with experts from Eastern Europe. Compared to Western European and North American software development markets, the average hourly rate here is highly cost-effective globally.
  • High-quality work. Another advantage of cooperation with companies from Eastern Europe is the top-notch quality of IT services. An agile approach to development allows local companies to design products that meet the most demanding customers and AML needs. Numerous solutions developed here have seen remarkable global success.
  • No language barrier. Communication is one of the key elements throughout the development process. Specialists from Eastern Europe have a high level of proficiency in English. In addition, cultural similarity contributes to smooth collaboration.

How to Choose an IT Outsourcing Company

The decision on who to select as a partner for your AML software development should be based on several factors. Regardless of what specific solution you need – for risk assessment, transaction monitoring, or Customer Due Diligence processes, first of all, pay attention to companies experience in the required domain. Check portfolio, company’s past work, and customer reviews. Reliability is a key to uninterrupted services.

The second important point is vendor compliance with PCI Payment Application Data Security Standard (PCI PA-DSS). It aims to support software manufacturers in developing secure applications and ensure that sensitive data is protected. Outsourcing companies must build and implement apps following specific PCI security standards.

In addition to such base criteria as quality of service and cost rate, speed to market is no less important. Also, take a look at the company’s tech stack and technologies that should suit your project. And finally, your partner must ensure strong data security.

Why Limestone Digital?

Efficient Anti-Money Laundering software is key for financial institutions’ success in AML compliance and fraud prevention. Custom solutions could be the best option for organizations to cover KYC/AML needs. So, vendor reputation and expertise are crucial when it comes to choosing a partner for your project. And Limestone Digital is always ready to respond to your business request, regardless of its complexity. And it provides all benefits of the Eastern European market.

Start your journey with Limestone Digital if you are looking for a reliable, ambitious, and responsible partner who appreciates transparency. Our agile team has already designed dozens of successful projects in different industries. Nine of ten clients return with a new idea for the next project. This is the best proof of our custom solutions’ success.

Limestone Digital in facts and numbers:

  • our approach to development reduces costs by up to 25%;
  • we work with firms of all sizes – startups, SMBs, and enterprises;
  • our team never turns away constructive criticism and welcomes openness from our clients;
  • we are the first software development company in the Czech Republic;
  • we use the latest technology to bring ideas of any complexity to reality.

Custom Software Development with Limestone Digital

Company expertise spans several areas, including fintech. Limestone Digital provides custom software development for accounting, loan, leasing, and mortgage services. In our work, we use state-of-the-art technologies — artificial intelligence, IoT, and business intelligence.

The AML Fraud Detection System from Limestone Digital is designed to identify and respond to potential threats. The solution allows generation scenarios and rules based on the tracked dimensions of an individual or grouped activities with similar criteria in a given time period. Due to this advanced system, financial institutions can provide their best-in-class services and operate safely within regulatory compliance. Anti-Money Laundering software helps to reduce risks and protect the reputation in the market.

Our clients, among which there are also leading brands, emphasize our collaboration flexibility. We design and create solutions, providing regular calls and reports to keep clients informed about all processes. We offer three collaboration types: scalable tech team extension, tech team + PM, and tech team + PM + CTO expertise.

Below are the five major advantages of developing custom Anti-Money Laundering (AML) software with Limestone Digital.

  1. Your solution will be fully adapted to your business processes.
  2. You will get full control over your databases.
  3. A custom platform will enable your organization to scale up quickly and easily.
  4. You’ll be able to respond to customer needs quicker and better.
  5. You will no longer be dependent on third-party providers.

Do you have an idea and don’t know where to start your project? Let the Limestone Digital expert tell you how our team can convert your vision into a custom-coded AML solution. Book a business consultation and take the first step to better compliance and an effective fight against financial crime.