Minimize false positives in AML–whitelist, dedupe, & secondary evaluation

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RegTech software can minimize false positives in AML Compliance, screening, monitoring

Achieving both effectiveness and efficiency in AML Compliance will always be a balancing act. Institutions must achieve effective AML Compliance, and they need also to minimize time-eaters like false positives. [To learn more about the causes of false positives in AML screening and transaction monitoring, read Part 1 of this article at this link.]

The good news is that financial institutions have excellent options for AML screening software and AML transaction monitoring software. These AML solutions leverage API interfaces, automation, machine learning, and emerging AI options. And various data services and analytical tools can help institutions achieve effective and efficient AML Compliance.

AML software helps financial institutions minimize Risk and minimize false positives with the following features:


Whitelisting in AML Compliance refers to the process of a financial institution identifying screening and monitoring hits as false positives when they are known to be false. Individuals and entities whom institutions know well and trust often qualify for whitelisting. When institutions whitelist their well-known and trusted individuals and entities, their AML solution will waive these future false-positive hits automatically.

With automated whitelisting, AML screening software automatically waives whitelisted false positives. This does require an AML analyst to authorize the whitelisting of an entity. Thereafter, the software will automate the waiving process. Prior to automated whitelisting, an actual human analyst needed to waive each false-positive case every time it hit.


Financial institutions can also use automated deduplication. Deduplication—or “deduping”—occurs automatically when the AML software recognizes a duplicate hit that has already been waived once by an analyst. This means that AML analysts only ever work a false positive one time. Deduping and whitelisting are similar in effort and effect.

Secondary Evaluation of Screening Hits

A third key automation tool is Secondary Evaluation, which is a post-process analysis. High quality AML software systems can automate secondary evaluation of screening hits. This greatly reduces false positives because the system can match hits against additional data fields like addresses, phone numbers, birthdays, and so on. Screening initial hits against additional data fields in a secondary evaluation weeds out false positives in order to home in on true hits.

AML software solutions should automatically minimize false positives in AML Compliance

Minimizing false positives and maximizing accuracy require high quality AML software systems. 

Institutions should expect their AML solutions to include robust options for automated whitelisting, for automated deduplication, and for automated secondary evaluation. These three features work wonders in minimizing false positives in AML screening and AML transaction monitoring.

Top AML solutions leverage automation and machine learning. With these tools, AML professionals configure the software and its automations. And then analysts spend their time on working cases with true risk rather than yet another false positive.  

If you’d like to learn more about minimizing false positives in your AML Compliance, contact us today. Or check out our AML solutions for screening and transaction monitoring on the RegTechONE platform.

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With AML Partners’ platform technology for RegTech, updating and upgrading your AML and eGRC software solutions is easier, faster, and much less expensive. Contact us today to explore how platform technology and our end-to-end AML Ecosystem powered by the RegTechONE platform–can transform the efficiency and effectiveness of your unique AML Compliance efforts. RegTechONE software for AML Compliance includes fully integrated modules for CDD KYC software for on-boardingbehavior and transaction monitoring software, and sanctions screening software for comprehensive AML screening. And AML Partners simplifies your end-to-end fully integrated AML Compliance efforts even further with an optional Subpoena Search module for FinCEN 314a and similar subpoena searches. Contact us today to learn about our proof-of-concept option or schedule a demo of RegTechONE, the AML software ecosystem. With extraordinary configurability and built for API extensibility, the RegTechONE AML software platformpowers not only an end-to-end AML software solution but also vendor managementAML client lifecycle managementeKYC Golden RecordsPerpetual KYC, and so much more.

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