Money laundering has always been a problem, especially for financial institutions, but with the inclusion of cryptocurrencies, the need for effective AML compliance solutions is now greater than ever.
Every year, between 800 billion and 2 trillion in US dollars is “laundered”. That’s between 2 and 5 percent of the global GDP, according to the UN.
In this article, we’ll explain what AML compliance software solutions are and what they do, along with the best solutions and some tips on what to look for when choosing one for your business.
In the high-stakes world of finance, where every transaction is a potential thread in a web of illicit activity, Anti-Money Laundering (AML) compliance has become a non-negotiable cornerstone. The stakes are dizzying: global AML fines topped $8 billion in 2022, and the complexity of digital transactions only deepens the challenge. For banks, fintechs, and other financial institutions, the pressure to detect and deter money laundering—while keeping operations lean and customer experiences smooth—is relentless. Enter AML compliance solutions: a suite of technologies and strategies designed to streamline this Sisyphean task, turning a regulatory burden into a strategic edge.
The old ways won’t cut it anymore. Traditional AML efforts leaned heavily on manual reviews, static rule sets, and siloed data—think armies of analysts poring over spreadsheets, chasing false positives. It was slow, costly, and prone to error. Today’s money launderers are savvier, exploiting cryptocurrencies, shell companies, and cross-border digital flows with a sophistication that outpaces human oversight. A 2024 Deloitte survey pegged 60% of midsize firms as still grappling with outdated systems, hemorrhaging resources on processes that miss the mark. Modern AML solutions flip the script, harnessing automation, artificial intelligence (AI), and real-time analytics to spot the needles in the haystack without breaking the bank.
Take transaction monitoring, the beating heart of AML. Solutions like FIS’s AML Compliance Hub or SymphonyAI’s NetReveal use machine learning to sift through millions of transactions instantly, flagging anomalies—like a sudden spike in round-number wire transfers—that might signal smurfing or mule activity. Where legacy systems drowned in false positives (sometimes 90% of alerts), AI-driven tools slash that noise by up to 85%, per FIS claims, letting investigators focus on real threats. It’s not just efficiency; it’s precision—crucial when regulators like the U.S.’s FinCEN or the EU’s AMLD6 demand airtight suspicious activity reports (SARs).
Compliance isn’t just about catching bad actors—it’s about knowing your customers. Know Your Customer (KYC) processes, a pillar of AML, once meant stacks of paper IDs and manual checks. Now, platforms like Jumio or Trulioo automate identity verification with biometrics and global watchlist screening, cutting onboarding from days to seconds. This isn’t trivial: the NFL’s recent scramble to align with BBB National Programs’ privacy standards after years of lax data practices shows even giants can stumble. Whoever advised their digital strategy missed the memo on scalable KYC—leaving fans’ data exposed until the BBB stepped in. Robust AML software could’ve preempted that mess, embedding compliance into the customer lifecycle from day one.
Cost is the elephant in the room. Building an in-house AML system might seem tempting—tailored control, no vendor lock-in—but it’s a resource sink. A February 2025 X post from @thibaultdebarsy nailed it: the build-vs-buy choice hinges on scalability and long-term efficiency. Off-the-shelf solutions like Oracle’s Financial Crime and Compliance Management deploy fast, adapt to new regulations via cloud updates, and spare firms the IT overhaul. For smaller players, SaaS options like Alessa scale with transaction volume, keeping budgets in check while delivering big-league insights.
The payoff? Beyond dodging fines—think HSBC’s $1.9 billion hit in 2012—these tools turn compliance into a trust signal. Customers, wary after breaches like Equifax, crave transparency. A streamlined AML program, with clear consent flows and secure data handling, builds that trust. Operationally, it’s a win too: automation frees staff for high-value tasks, not grunt work. As financial crime evolves—AI-generated deepfakes, anyone?—solutions like Sumsub’s real-time monitoring keep pace, future-proofing firms against tomorrow’s threats. In 2025, AML compliance isn’t just a checkbox; it’s a lifeline, and the right tech makes it seamless.
What are AML Compliance Solutions?
The United States was the first country to make money laundering illegal with the Money Laundering Control Act of 1986. This act amended the Federal criminal code and for the first time made money laundering illegal.
The UN’s Vienna Convention 1988 Article 3.1 described money laundering as:
“The conversion or transfer of property, knowing that such property is derived from any offense(s), for the purpose of concealing or disguising the illicit origin of the property or assisting any person who is involved in such offense(s) to evade the legal consequences of his actions.”
Not that money laundering wasn’t around before then.
However, in recent years, money laundering is on the rise, placing extra pressure on businesses, especially financial services, to adopt AML compliance solutions.
These (AML compliance solutions) are platforms that help organizations ensure their compliance with applicable laws and regulations and meet their anti-money laundering obligations.
The person who often manages all of this is called the AML compliance officer.
What do AML Compliance Solutions do?
AML compliance solutions have several tasks, including:
Monitoring Transactions
AML compliance software solutions are capable of monitoring financial transactions in real-time or periodically, which helps in detecting suspicious behavior and other red flags.
Risk Assessment
Another important functionality of AML compliance solutions is their ability to assess the potential risk associated with customers, transactions, and geographic regions, which helps organizations minimize them.
Integration with Watchlists
Next, AML solutions should integrate with government or internal watchlists or blacklists of known individuals and groups involved in money laundering and similar activities.
Customer Due Diligence
Customer due diligence or CDD is vital for verifying the identity of the customer and risk profiling and AML solutions often offer valuable insight into these.
Regulatory Reporting
Relevant authorities require regular reports and documentation on suspicious financial activities from your business. With the help of AML solutions, you can more easily and quickly generate these reports and ensure your compliance.
Compliance Monitoring and Analytics
Finally, these solutions can also offer crucial insight into the business’ compliance efforts through monitoring and analytics tools and help you stay up-to-date on the latest regulatory changes, helping your AML efforts.
Best AML Compliance Solutions
The AML software market is worth $1.77 billion in 2023. A couple of years ago (2017), it was worth $860 million. That means that it has doubled in worth in just 5 years!
Naturally, there are a lot of AML solutions out there, but we’ll give you the 5 best ones currently:
1. Captain Compliance
Captain Compliance is an outsourced compliance service that provides businesses in different markets and industries with AML, financial, regulatory, corporate, GRC, and other compliance solutions. While the speciality is in data privacy software we have a network of compliance experts that we can introduce you to who can also help with SOC 2, ISO, NIST, GDPR and other well known frameworks.
In addition, our contacts also offers compliance auditing, monitoring, and training & education services.
2. SEON
SEON is a fraud-detection tool that can also help with AML compliance by monitoring criminal and fugitive watchlists, blacklists, and sanction lists. The API can be used on its own or integrated with other tools.
3. Dow Jones Risk & Compliance
The Dow Jones is one of the oldest stock market indices in the world. The Dow Jones Risk & Compliance solution can provide important insight into high-risk industries and money laundering, including financial crime compliance, 3rd-party risk management, and more.
4. iComply
iComply offers AML and KYC solutions for businesses in fintech, crypto, and other markets, including over 150 million data sources, including KYC, KYB, identity verification, and proofing, and more.
5. Token of Trust
Token of Trust is a US-based AML, KYC, and background screening company that also covers markets like the EU and provides comprehensive age and identity verification, PEP and sanction cross-checks, and more in industries like finance, healthcare, retail, and travel.
What to Look for in an AML Compliance Solution?
As you can see, AML compliance solutions can differ quite a bit. This is why it’s important to carefully qualify them to find the one that can best answer the specific needs of your business.
Here are the four most important things to look for in them:
1. Regulatory Compliance
One of the most important questions when vetting AML solutions is, “how well does the solution comply with relevant laws and regulations?” If it cannot align with the applicable regulations in your industry and geographic region, it won’t be very useful to you.
2. Data Integration
Another factor to look for is if the AML solution integrates with internal and external data sources, especially transaction systems and watchlists of known or high-risk individuals and groups.
3. Risk Assessment & Monitoring
AML compliance solutions provide comprehensive insight into customer data and transactions and identify potential red flags and suspicious activities that can imply financial crimes and money laundering activities.
4. Flexibility and Scalability
Finally, as the needs of your business for compliance can change over time, the solution you are using must follow suit and allow your business to grow and adapt to these new requirements, including new laws and regulations in your industry and market.
FAQs
What is AML Solutions?
AML solutions are software services or platforms that can help businesses detect, prevent, and report activities related to financial crimes, including money laundering and terrorist financing.
What are the 5 Elements of the AML Compliance Program?
The 5 elements or five “pillars” of an AML compliance program are
- Implementation of internal controls
- Designation of an AML compliance officer
- Periodic employee compliance training
- Independent AML compliance program testing
- Customer due diligence (CDD)
What is the AML Solution for Banks?
AML solutions for banks include tools or software that help banks and other financial institutions to comply with AML regulations and identify and prevent financial crimes.
What Software Does AML Use?
AML or anti-money laundering uses various softwares, such as:
- Watchlist screening software
- Risk assessment software
- KYC software
- Compliance monitoring and reporting
- Transaction Monitoring Systems (TMS)
Of course, these will vary depending on the needs of the business using them.
Outsourcing AML Compliance
90% of money laundering crimes are never detected. However, the consequences of money laundering can be catastrophic for your company.
This makes AML compliance solutions a necessity, especially if you’re in a high-risk industry like finance.
Contact Captain Compliance, and our team of compliance superheroes will help your business detect, prevent, and report money laundering activities. Get in touch today!
