Automated AML transaction monitoring can lead your compliance team out of the darkness

Adherence to compliance regulations is no easy feat for financial institutions. The compliance team depends on immense accuracy and timely information to get their tasks done properly – and the right tools can lead them out of the darkness. An AML transaction monitoring solution has the ability to sift through millions of transactions, match them against risk profiles, and automatically identify suspicious behaviour in real-time or on a scheduled basis, while minimising false positives.

It’s critical that the AML transaction monitoring solution identifies and alerts the financial institution of any transaction that may lead to money laundering, fraud, and/or terrorist financing. The best types of AML transaction monitoring solutions include integrations with sanctions & watch lists, a robust rules engine with AI capabilities for customer profiling, a comprehensive workflow with full audit trail for investigations, and real-time alerts which will, undoubtedly, make the compliance team’s lives easier to detect suspicious transactions.

All transactions should be monitored based on a combination of customer profile and risk level, with specific details relating to customer behaviour and transaction detail taken into consideration. When a transaction is flagged, an alert should be generated and the investigation procedure to resolve the case should take place. This procedure needs to be clearly defined in a written policy and enforced beforehand, so that quick and accurate action can be taken when suspicious transactions are flagged.

Streamlined investigation process

It is important that the compliance team investigate each and every alerted transaction. The AML transaction monitoring solution should provide account and transaction activity statistics on the customer in question, so that the information required for an investigation is all in one central system. Furthermore, financial institutions need to create a centralised investigative unit to follow-up on these flagged transactions while a standard protocol needs to be in place for all investigations.

In serious cases, these investigations can lead to the filing of a Suspicious Activity Report (SAR), an important source of information for law enforcement agencies to initiate action. That is why it is critical for investigators to collect all relevant information, prepare the report, and submit it to senior management so they can decide whether or not to file a SAR. The ideal AML transaction monitoring solution is able to export key information into the format of a SAR report at the click of a button.

The compliance manager should have a global view of all the data collected through the transaction monitoring process. This dashboard should illustrate the number of flagged transactions, false positives, true positives, SAR filings, and rule performance so that the AML transaction monitoring solution can be continuously fine-tuned. Finally, it is crucial to measure how investigators resolve cases so that it can be shown that follow-up procedures are being maintained with a full audit trail readily available.

ComplyRadar – it pays to comply

ComplyRadar utilises a full risk-based approach to eliminate disruption to genuine customers, detect potential criminal behaviour, and demonstrate full ongoing compliance. It monitors transactions related to individuals, accounts, and entities to detect suspicious activity quickly and effectively, through a fully audited process to inspect and act on flagged transactions. For more information on how ComplyRadar can help you avoid reputational risk and potential fines, contact us today.

What Is Responsible Gambling And How It Affects Customers And Operators

It’s all fun and games – until it’s not. Although gambling is a popular and undeniably fun pastime, it should not be treated as a means to generate income. That’s where responsible gambling comes in. The concept of responsible gambling is a broad one which holds several policies and requirements that apply to gambling stakeholders so as to make sure that they respect protocols and provide a safe gambling experience for all.

A brief look at the 7 types of responsible gambling areas

  • Protection of vulnerable customers – This can be controlled through self-exclusion programs, limits on the amount of money and time players can spend on the gambling website, reality check functionalities, and the possibility of setting a financial limit to a gambling account.
  • Prevention of underage gambling – Operators must take the necessary steps and precautions to prevent people under the legal age (18-21) from playing by presenting a clear registration process while players are setting up their gambling account.
  • Safety measures against criminal activities – Operators can prevent fraud and criminal activities by installing software programs that detect and block money laundering and hacking.
  • Information privacy – Strong policies need to be in place to control access to private information such as customer names, addresses, and phone numbers.
  • Online payment protection – Operators need to make sure that personal customer payment information is safe and secure. This can be done through a reliable software program to protect all data.
  • A secure online environment – Operators need to make sure that their websites are secure, fun and enjoyable for customers to gamble at.
  • Ethical and responsible marketing – Advertising should be factual and not target underage or vulnerable customers.

The above responsibilities are mainly targeting operators, however for responsible gambling to be a success, players also need to be self-aware and abide by rules such as:

  • Gambling is seen as a form of entertainment and not as a means to earn money.
  • Customers should never bet more than they can afford to lose.
  • Customers should self-assess their time spent gambling, take frequent breaks, and check their wins and losses.
  • If customers feel that they, or someone they know, have a problem with gambling, there are organisations that can provide the necessary support.

ComplyRadar can help operators provide a safe and enjoyable gambling environment

ComplyRadar helps you address the responsible gambling requirements by automatically identifying problematic behaviour in real-time or retrospectively. It monitors gambling activity on an individual customer basis which is then measured against each specific customer’s profile. This automated process provides you with a unique betting fingerprint for each of your customers – enabling quick detection of out-of-profile activity for all your customers. For more information on how ComplyRadar can help you provide a safe gambling experience for your customers, contact us today.

The Compliant Customer Journey Always Wins

There are few industries as rapidly evolving as iGaming – that much is a fact. Every day brings exciting new developments in the tech world, and with each new product, service, and update – operators strive to improve their offering in line with their customers’ growing expectations. It comes as no surprise, then, that optimising the customer journey is firmly at the top of the priority list for any organisation looking to compete in this industry.

The cost per customer acquisition seems to be creeping higher and higher, and keeping those hard-won customers is becoming more of a challenge as iGaming companies continue to one-up each other by offering the best product, service, deal, or promotion on the market. That’s why building and retaining customer loyalty is paramount in today’s industry.

The modern customer wants a seamless experience on your iGaming platform. Sounds simple, right? Well, not quite. Making the most of your customer journey is crucial, but first you need to make sure you’ve got your basic processes and regulatory matters down to an absolute T.  To the outside world, it looks like this: a customer signs up, logs in, places a bet, then wins or loses that bet. But ask anyone who really knows the industry, and you’ll quickly find that there’s a lot more going on behind the scenes.

Keeping Players Happy & Staying Compliant

It all begins long before a player registers on your site; the minute they land on your page, the process has already kicked off – and you don’t want to find yourself playing catchup so early in the game. As an operator, you’re already tapping into your analytics behind the curtain, asking questions about the user’s risk level, location, IP address, and whether or not their device has been previously blacklisted. Other key considerations should include:

  • Are they Politically Exposed Persons (PEP)?
  • Has this contact information been associated with different names before?
  • Does the card they’re using match the details of the user who registered?
  • Is their first deposit disproportionately large considering their demographics?

Later down the line, you’ll want to delve a little deeper into their ongoing betting patterns and overall habits. Check on what they’re betting on, and what their behaviour and spend usually looks like. Any change in habit needs to be flagged and can be as subtle as playing far beyond their established routine, a change in the type of game they choose, or a marked increase in their daily spend. Identifying patterns of behaviour indicative of addiction is essential, so the earlier you can pinpoint that behaviour, the better, and this once again demands that you tighten your processes. Invest time and money early on in the game, and you’ll see it pay dividends soon enough – your loyal customers will be a testament to that.

It’s All About A Positive Customer Experience

Transaction Monitoring has become a necessity for compliance officers within the Gaming sphere to identify AML risk and detect suspicious activity. ComplyRadar enables you to fulfil your AML obligations whilst nurturing your genuine and VIP customers. Contact us for more information on how ComplyRadar automatically detects suspicious transactions – quickly and effectively – to help avoid reputational risk and potential fines.