From data encryption to ongoing testing, here’s what you need to know
With technological advancements streamlining and refining anti-money laundering processes, most businesses have adopted AML software as their trusted first line of defence. And while AML software has numerous benefits over manual processes, how can you be certain the platform you’re trusting with your most sensitive business information is truly secure?
What is AML software?
AML software helps businesses ensure they are meeting their anti-money laundering and countering financial terrorism (AML/CFT) requirements. It’s typically used as part of a wider AML compliance program and can help organisations manage their obligations more efficiently. Depending on the platform, functions can include document collection, ID verification with outside agencies, ongoing monitoring of customer activity and secure data storage.
Security checks – what you should know
While AML software solutions vary greatly in terms of their offering, security should always be a key focus. Here’s what you should be aware of when determining if an AML software platform meets your security requirements:
Cloud-based platforms – cloud-based AML programs can offer businesses serious scalability, affordability and high efficiency. However, data in transit and stored with a third party faces a new range of threats, so high-level security is particularly important.
Here’s what to look for:
- Data encryption – encryption should be used to keep data disguised throughout the entire process – from when it’s being transferred through to when it’s being stored. This ensures that if there is a breach at any point, the data will remain protected.
- Cloud host reputation – check that your AML software solution is partnering with a reputable cloud provider that has robust security measures in place.
- ISO27001 certification – this globally recognised security certificate, issued by the International Organization for Standardization, shows that an AML software solution complies with strict international standards for information management.
- Restricted access – it’s crucial that the software has built-in access restrictions, so sensitive customer data can only be viewed by approved staff members as part of their job function.
- Ongoing employee training – best-in-class AML/CFT processes rely on more than just great software. Providers should be committed to regular employee training to make sure AML/CFT compliance updates are adhered to, and that software keeps up with rapidly changing technology and security threats.
- Ongoing security testing – AML software is not a set-and-forget product. It should be regularly tested, so it doesn’t fall behind industry standards or best practices as they evolve. Ideally, testing will be carried out by a third party to check for weaknesses and opportunities for improvement.
Due diligence and transparency are key
With any major purchase or business partnership, it’s crucial to do your due diligence before you choose a provider – AML software is no different.
A key part of the process, as we’ve seen, is a deep dive into your prospective provider’s security features and standards. Without those robust measures in place, you’re risking customer data, legal consequences and serious damage to your reputation.
At First AML, security is a top priority. Our platform is designed to keep data safe, control access to sensitive information – and help you meet your AML/CFT obligations at the same time. Talk to us today to find out more.