In the financial industry, it’s more important than ever to create effective AML procedures to protect your business against fraud and comply with financial regulations. One area that is especially important in the AML process is document verification. From checking IDs to screening customer transactions, the verification process is the crucial first line of defence against criminals.  

Automated documentation verification is becoming an increasingly popular option for businesses, and in this blog, we’ll explore how implementing automated systems can benefit your AML processes and keep you compliant with a range of regulations. 

1. Faster and more efficient processes

Manually verifying documents and identities is a lengthy process. Not only do you need a team of trained staff, but you will also need to cross-examine information and request further information from external sources if more clarification is needed. This process can take days to weeks if manual processes are used, and this can discourage customers from completing onboarding.

Automated document verification is significantly faster, scanning a range of databases and producing results in just a few seconds. This system also flags any potential PEP matches and allows workers to be more efficient and save manual checks for enhanced due diligence. 

By speeding up the AML process, businesses can onboard customers faster and help to keep clients happy. In high-stakes industries like cryptocurrency and finance, customer satisfaction and a positive experience are crucial for maintaining your company's reputation.

2. Saves money on operational costs

Automated systems are a much more cost-effective alternative to manual document verification. Smart AML systems often only cost the initial installation price plus an occasional update or patch cost. Manual checks require employing an entire team, keeping them trained on best verification practices and continuous supervision. Manual AML checks also increase the risk of errors and bottlenecks, which can increase costs further. 

Automated systems allow companies to save resources and invest them in areas where they are needed the most. In the long run, automating these more basic checks and assigning staff to hire value work can have huge cost savings. 

3. Greater Accuracy and Consistency

The biggest issue with manual verification processes is the risk of human error. Time constraints, fatigue and repetitive tasks can all contribute to missing red flags, inconsistencies and errors, which all run the risk of allowing financial criminals into your system. Automated systems use a set of pre-determined rules and are programmed to ensure consistent outcomes for each check conducted. Modern machine learning also means that AI can identify new trends and money laundering risks and apply these to the verification process. 

Automated systems can spot anomalies, missing data and discrepancies that may be overlooked during manual checks. As a result, automation ensures more accurate data and a reduced likelihood of error.

4. Enhanced fraud detection

Financial crime is ever-changing, and criminals are adapting to become smarter at how they commit fraud. Manual checks often fail to detect sophisticated fraudulent documents like IDs.

Automated document verification systems can analyse documents in detail, enhance areas and compare data across a range of systems to identify new or common indicators of forgery or suspicious patterns. Many systems, like TripleCheck, also incorporate biometric checks into the verification process to confirm that a person is real and matches the provided documents, without the need for manual reviews. 

With this technology, fraud can be detected before onboarding begins, and you can ensure compliance with AML laws and protect your institution. 

5. Ensures full regulatory compliance

All financial institutions are subject to strict regulations and must retain proof that their processes are compliant with anti-money laundering rules and regulations. Manual verification and compliance processes can be difficult to track, and as new rules evolve, businesses can fall behind in managing threats. 

Automated document verification helps companies stay compliant by standardising processes and collecting data in one easy-to-access system. Reports can then be easily created, and data can be easily processed when further investigations are needed. Automation helps to prevent consequences like fines and penalties associated with failure to comply with AML regulations.   

7. Improves customer experience

Advances in technology alongside busy lives mean that customers want fast, convenient and seamless experiences. A long and complicated onboarding process that requires customers to submit documents or attend in-person interviews can lessen the chance of onboarding and lead to dissatisfied customers. 

Automated document verification keeps customer involvement to a minimum and allows clients to verify identities through mobile and online applications that take only a few minutes to use. Verification and feedback from liveness checks are often instant, meaning faster approvals and happier customers. Customer satisfaction directly relates to conversion rates, so having an effective automated process is essential. 

8. Strengthened data security

Financial institutions that handle sensitive and personal data are at greater risk of breaches when processes are handled manually. Paper records and shared inboxes in particular make it easy for unknown parties to access data. 

Modern automation platforms come with built-in security measures like encryption and secure data systems. Only authorised personnel have access to the system, and privacy policies are automatically assigned to the software. Not only does this help organise data, but it also reduces the risk of any leaks and protects your company’s reputation as a trusted institution. 

9. Performance tracking and analytics

Automated AML systems record a range of data that can be used to assess performance and the efficiency of working. Metrics like processing times, the number of errors and any bottlenecks are recorded alongside standard customer data.

These metrics provide important insight into the effectiveness of AML procedures and make it easier to identify where further resources and training are needed. Using this data to continuously improve operations will allow your company to stay ahead of the curve and effectively fight financial crime.  

Simplify your strategy with automated systems 

Automation has a number of different benefits, but the biggest selling point is a simplified, streamlined AML process for your business. Combining manual and automated checks can help reduce operational costs, improve workflows and strengthen anti-fraud measures. 

Not only will your business be able to maintain its user trust, but automation also helps protect your reputation and avoid hefty fines or penalties from non-compliance. 

At SmartSearch, our advanced automated software integrates basic and enhanced checks into one system and allows you to view all the data found on one secure dashboard.