Thu Sep 08 2022
7 Capabilities to Look for in an FCCM Software
Financial Crime and Compliance Management (FCCM) software is the first line of defense financial institutions (FIs) have against money launderers, cyber-criminals, and other malicious actors. However, while they broadly have the same functions, not all anti money laundering (AML) solutions are appropriate for all FIs.
FIs operate in a wide variety of markets, have different objectives, and are subject to the laws of various jurisdictions. As a result, each FI faces a set of different challenges that may require a unique FCCM solution. However, whatever solution an FI ultimately chooses, their FCCM software needs to have a few critical capabilities right out of the box. These capabilities ensure effective anti money laundering functionality without compromising the FI’s ability to conduct normal business.
Here are some essential features all FIs need in their FCCM software:
1. Easy Customer Onboarding
In anti-money laundering programs, securing FI systems starts in the customer onboarding process. Money launderers will typically attempt to open multiple accounts to thwart the ability of government and FI AML teams to discern illegal funds. Good AML solutions will be able to quickly facilitate low-risk customers while keeping the FI’s system secure from the most likely threats.
The system should be secure while allowing for a reasonably expedited on boarding process that does not require excessive amounts of input from legitimate customers. Additionally, the software should allow customer due diligence (CDD) and know your customer (KYC) requirements to be met with minimal input from the FI staff.
2. Comprehensive Fraud Monitoring and Detection
Anti-money laundering software should also be able to address all the most likely types of criminal activity and also detect novel attempts at fraud.
While most systems on the market can do the former, detecting new patterns of fraud is not something all AML products can do effectively. To do this type of fraud monitoring effectively, AML software needs to leverage advanced artificial intelligence (AI) and machine learning (ML) modules to effectively multiply the capacity of human AML experts.
3. High Uptime
Malicious actors work around the clock and are present in every timezone. They are all waiting for small windows of opportunity to sneak into an FI’s system, making even the shortest system downtime a threat.
This means that any FCCM solution chosen by an FI needs to have as close to 100% service availability as possible. Thankfully, cloud-based AML solutions featuring multiple redundancies offer an excellent way for even the smallest FIs to achieve very high service levels.
4. Offers a Smooth Customer Experience
The quest for better system security has inevitably resulted in false positives that have inconvenienced millions of customers over the years. Innocent customers were all too often locked out of their accounts because of overly sensitive FCCM designs, resulting in negative customer experiences.
Current systems are now using better AI and ML are now able to solve this issue. The accuracy improvements in today’s FCCM software results in fewer false negatives, a smoother customer experience, and an overall better level of security. This makes an FCCM upgrade worth considering for FIs that want to deliver better quality customer journeys.
5. Improves Global Standards Compliance
Not only do different countries and economic blocs have different procedures and regulations governing international trade, but the nature of their transnational relationships is constantly changing as well. This means that FCCM software has to be able to keep up with the ever-changing geopolitical and economic landscape.
6. Efficient Analytics and Reporting Features
Today’s generation of FCCM software is capable of much more sophisticated automation scripts than ever before, thanks to the use of advanced AI and ML. However, there will always be a need for humans to make important decisions, especially for AML activities. Having better analytics and reporting serves to significantly reduce the workload on human analysts, allowing for more accurate and timely decision-making.
7. Straightforward UX/UI
All FCCM software has to work within a human centric system. Even the most powerful and feature-rich FCCM solution will be of limited utility to AML activities if users cannot harness the software properly.
As such, FIs should strive to select FCCM solutions that are not only packed with features but are designed in a way that aids in their use. Better UX/UI reduces the possibility of human error, cuts down needed training time, and allows FCCM systems to be more effectively used for AML activities.
Prevent Money Laundering with Better FCCM Software
Money laundering and other transnational crimes have a serious effect on financial institutions and the communities they support. If money laundering is allowed to continue unimpeded, it will be much easier for criminals, rogue governments, and other malicious actors to spread instability and violence throughout the world.
Having the right FCCM solution in place empowers FIs to reduce the risks to their stakeholders and the global community as well. By selecting an FCCM solution that offers the right anti-money laundering features, FIs no longer have to choose between offering security or a better customer experience.