Business Guardian: Watchlist Screening as a Protective Shield

Money laundering (An escalating crime):

The fraudulent activities are expanding at a greater speed specifically in financial organizations. Money laundering means to convert illegal gains into legal finances. There is no way to end financial crimes except by adopting strong regulatory practices. Organizations should take all precautionary measures for the eradication of financial crimes like money laundering. Many practices help in the prevention of money laundering activities. One of the major practices is watchlist screening. Global watchlist screening helps in maintaining the integrity of organizations. The ongoing watchlist screening ensures to alert organizations against all future rising threats.

A research study was conducted to explore the reasons for the high demand for money laundering in developing countries. The results of the study concluded two major reasons for the high demand for money laundering such as diverting funds and increased tax rates. The study further stated that these reasons will help the states to develop new strategies to fight against money laundering.

Protection from scams:

Organizations should regularly seek the practice of robust regulatory screening services such as watchlist screening. Because the one-time watchlist screening will not provide organizations with consistent benefits of protection. Because risk never stops arising. A risk arises with every new business operation. Organizations need to go for ongoing watchlist screening for the regular monitoring of all risks and threats. This screening provides a robust shield against all challenges at a global level and ensures to alert organizations against any new risk or threat.

A research study was conducted to examine the fact whether AI is effective in Anti-money laundering operations. The results of the study concluded that AI and advanced innovative solutions are effective methods to fight against money laundering crimes and most of the AML regulatory organizations are adopting advanced AI solutions to combat financial crimes. The study further concluded that the application of AI and machine learning will help in consistent improvements.

Another research study was conducted to check the effectiveness of machine learning in the customer risk assessment process. The results of the study stated that the application of the machine learning process helps in the customer risk assessment process and KYC process. It reduces the chance of risk and threats and most financial institutions are already heading towards innovative solutions to combat the challenges.

The rapid increase in financial crimes is the reason that regulatory screening programs have become for organizations to combat illicit activities. According to Organized Crime Index, there are more opportunities for criminals to engage in illicit activities after the pandemic. Additionally, 83% of the world population lives in states that are at high risk of criminal activities.

More organizations are taking steps to maintain compliance with the work environment and most states are taking steps to combat the money laundering crime. In these circumstances, watchlist screening will play the best role in providing a protective shield.

Shocking financial scandals:

Numerous cases of money laundering have happened over the past years. Financial crimes seem to be unstoppable. Let us discuss shocking scandals related to sanctions and watchlists.

A German bank named “Deutsche Bank” was punished with a fine of $425 million in a money laundering case. It was reported that they were using a scheme called “mirror trading” and laundered billions from Russians between the periods of 2011 to 2015. The traders were able to move about $10 billion from Russia. According to the US reports, the AML department of the bank was unable to recognize the criminals, they stated that they were unaware of the identities of the criminals and even don’t know where they came from. The offenders moved out the money and left no spot. Furthermore, it was reported that the Deutsche Bank was also violating the laws related to compliance. The bank was also advised to consider monitoring its compliance measures. The German Bank was also reported to be involved in more than one scandal.

A telecommunication company ZTE Corporation was a Chinese company that was suspended by the US because the company was illegally transporting US technology to North Korea and Iran. The company was punished with a fine of approximately $892 million by the US government. The company was on probation period and the period was extended. There were also charges against the company’s former research director as he was involved in some illegal visa-related issues.

A research study was conducted to explore the practices and efforts to combat money laundering crime in Indonesia. The results of the study stated that money laundering offenders always need to hire a middleman to conceal his/her illicit gains. That person could be an officer of a financial institution or a lawyer. This is the reason that these criminals easily make a way out to involve their illicit gains in legal finances. Furthermore, the study elaborates on the three stages of money laundering and the prevention that could be done with the help of legal punishments.

Essentials of watchlist screening:

Watchlist screening service ensures to protection of the organizations against all the potential risks. This screening provides an extra shield to the organization. Global watchlist screening provides broad buried monitoring services of all business components. Let us discuss some more perks provided by watchlist screening to the organizations.

• Watchlist screening helps in the deep monitoring of all business elements so that all kinds of risks and threats can be diminished. A watchlist screening system helps in the early identification of all future obstacles and challenges. With the help of early detection, organizations find it easy to sort them out on time.
• Global watchlist screening helps in enhancing the organization’s due diligence process. It helps make customer onboarding so simple and smooth.  This screening deep-scanned all the components related to the new customer and the new business deal. In this case, this screening helps alleviate all risks and threats related to the new business relationship.
• The watchlist monitoring service assists organizations in keeping up with global business guidelines. When all the risks and threats are diminished, organizations can easily follow international rules and regulations.
• Furthermore, sanctions and watchlist programs secure the organizations from all financial crimes. This screening prevents all money laundering activities. Watchlist screening is one of the indicators of corruption monitoring services. At the initial stage, this screening ensures to detection of all corruption-related activities and sorts them out according to the requirements. Because, if corruption-related crimes don’t get detected at the earliest stage, they will get transformed into high-risk money laundering crimes.
• Ongoing watchlist screening always keeps a strong eye on all transactions and all finance-related operations. Watchlist screening ensures that organizations are up to date with all evolving and innovative financial solutions. Because finance solutions transform rapidly organizations need to stay alert with all the innovative solutions.

• Additionally, this screening helps organizations in the KYC (Know Your Customer) process to avoid all kinds of doubts and threats. Global watchlist screening conducts robust scanning operations at a global level so that the organizations can avoid building business relations with any sanctions-related entities and organizations.
• Watchlist screening also helps organizations act under ethical standards and global AML rules and regulations. When all the financial operations of organizations are sorted, it gives the confidence to organizations to extend their business to the heights without any fear of threats. Furthermore, it also assists in protecting the organizations from legal punishments.
• AML Watcher provides the best robust screening services. It helps to protect the organization’s important components. In addition, the advanced and innovative solutions help in simplifying all business operations along with protection from reputational damage. According to a research study that was conducted to examine the effect of Artificial intelligence technologies on money laundering, the new and innovative technologies help in the enhancement of Anti-money laundering AML frameworks.

The best watchlist screening service:

If you are also struggling with fraudulent activities within your organization protecting the reputation of your organization has become difficult for you. Then, AML Watcher is here to provide you with one of its exceptional protection services, the watchlist screening. The great practice of global watchlist screening by AML Watcher ensures to enhancement of your decision-making strategies, helps make your customer onboarding process smooth, maintains regulatory compliance within the organization following the global regulatory guidelines, and provides deep monitoring services of all business-related elements. Additionally, if organizations adopt the ongoing watchlist screening practice, it will help them to evade all financial and reputational challenges. Do not delay. Contact us today.