What is AML case management?
Case management in AML Compliance describes the process by which AML analysts research and resolve possible suspicious activity. AML software solutions used by financial institutions should flag potentially suspicious activity in transaction monitoring and in screening. When an AML system flags suspicious activity, the system automatically creates cases. AML analysts must then research and resolve these cases according to their institution’s procedures and Risk-based Approach. Modern AML software solutions should include AML case management tools that support the work of the analyst.
‘Managing by exception’ a key to case management in AML
When financial institutions plan their AML Compliance program, they configure their monitoring systems to “manage by exception.” In AML Compliance, managing by exception means tuning your AML software to monitor and flag suspicious activity, i.e. exceptions to expected behavior.
According to federal regulations and AML best practices, each financial institution must create and operationalize its own unique Risk-based Approach. An institution carefully considers its book of business–its products, its customers, its geographic service areas, and so on. In the context of all these details, an institution can predict how its customers will use its products in appropriate ways. This includes behavioral predictions related to types of transactions, frequency of transactions, risks related to geography and types of customers, and so on.
Once an institution can predict with substantial accuracy what ‘normal’ behaviors can be expected from its customers, the institution can create rules and monitoring for unexpected behaviors. Unexpected–i.e. exceptional–behaviors raise red flags for suspicious activity. This type of managing by exception requires analysts to research and resolve concerns about exceptional behaviors flagged by its AML software system.
The pre-technology nightmare of AML case management
Prior to the rapid advances of AML software solutions and cutting-edge RegTech software, AML case management was a nightmare. AML analysts worked cases by pulling together paper copies of documents and by using spreadsheets and manila folders.
Institutions relied on their Compliance teams to achieve AML case management manually. Teams would follow a defined process and do their best. But the working of cases relied on a lot of different people wrestling with complicated moving parts not easily consolidated for analysis.
Case management software transforms the work
The last 20+ years have transformed the range and power of AML software solutions. And the best AML software solutions now include robust case management tools. These case management tools transform the working of cases and the identification of truly suspicious behavior.
AML case management technology supports AML analysts in resolving cases with suspicious behavior effectively and efficiently. An institution’s AML software system automatically monitors transaction behaviors and screening. When it recognizes an exception to “rules” for predictable behaviors, the system automatically creates a case. This is where the best AML case management software shines.
AML case management software on a powerful AML solution will automatically pull together all relevant data needed by the AML analyst who works the case. Bringing all key information together in one digital location is the key for effective and efficient case management.
Dedicated AML case managers can then analyze the unexpected behavior to determine whether it is truly suspicious. In many cases, trusted customers may exhibit behaviors that might be flagged–but that can easily be verified as legitimate for that customer. Processes like whitelisting in the software let an analyst confirm the behavior as expected for that trusted customer now and in future cases. Other processes like deduplication and secondary evaluation also help improve the remediation of false positives in case work.
AML Compliance specialists have a lot of options in their AML software solutions now and also in their AML case management solutions. They can choose technology tools that maximize automation, that bring together all data in a digital case file, that simplify and automate false-positive remediation, and so on.
‘Dynamic Case Manager’ an example of cutting-edge AML case management software
At AML Partners, we tackled the challenge of AML case management by building it directly into our RegTechONE software solution for AML Compliance. RegTechONE’s Dynamic Case Manager is a Global BSA/AML ‘Suspicious Activity Alert’ Case Manager.
With RegTechONE, AML case management begins as soon as you log into the system and ends when you log off. RegTechONE (RTO) is AML software with AML case management in its digital DNA.
With RTO’s AML case management, users have fully integrated RegTechONE tools that include the following:
- Dynamic Question Management
- A triggering system
- Event and Action libraries
- Rules engine
- No-code dynamic workflows
- Dynamic Risk Engine
- Screening and matching engine
- Email-notifications system
- Drag-and-drop configurability systemwide
- Dashboards
- Business Intelligence
End-users configure RegTechONE via drag-and-drop workflows. This means that users themselves align RegTechONE to their institution’s Risk-based Approach. And users create workflows and use automation tools for AML case management that are aligned perfectly to their needs.
Bespoke AML case management via no-code configuration
RegTechONE’s no-code configurability is the key. Users create a customized case-management workflows.
In short, AML case management exists in RegTechONE at its digital core. Users simply automate and execute their institution’s best practices in AML case management. The AML case manager automatically workflows every case based on end-users’ initial configurations. Financial institutions that choose AML case management on the RegTechONE platform proactively mitigate their risk case by case, dynamically and with maximum efficiency.
Dynamic options elevate case management software
When institutions evaluate options for AML case management, dynamic features should stand out. Institutions should be able to configure an AML case manager to their precise needs. Here are examples of dynamic features in RegTechONE’s AML case management:
- Design multiple steps involved in your Case Review process
- Design permissions for users in the workflow
- Assign users to workflow
- Design screen pages, question text, and response types
- Options include yes/no, textbox options, dropdown tables, file uploads, etc.
- Design case-annotation text boxes
- Design file-upload capability
- Specify 30-, 60-, 90-day Case Reviews via email notifications
- Trigger email notifications when Cases go un-reviewed for ‘n’ number of days
- Design question triggers based on case characteristics
- Import Cases from Transaction Monitoring System
- Import Cases intraday or nightly/weekly/monthly
- Import transaction details associated with Cases
- Send RFI email requests to correspondent banks
- Import RFI email responses received from correspondent banks
- Associate imported RFI email responses with Cases
- Design ad hoc queries
- Design Dashboard charts and graphs using ad hoc query results or BI engine
- Generate automated SAR/CTR in FinCEN uploadable electronic format
Contact us to learn more about case management in AML
Financial institutions seeking to learn more about AML case management options should contact us today. We are interested to learn about your needs for AML case management and strategize with you about how we might help.
