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What is AML Screening?
AML screening assesses the potential risks associated with a customer’s involvement in money laundering or terrorist financing. It helps differentiate customers who can safely proceed to the next onboarding step from those requiring further review.
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What does it mean if a Red Flag appears in AML Screening?
AML screening determines whether a user's identity information matches that of flagged individuals. This assessment is based on details such as name, date of birth, and nationality. If the similarity score exceeds the threshold, a "Red Flag" is triggered.
A Red Flag does not mean the user is involved in money laundering; instead, it indicates that their identity information is similar to that of a flagged individual and requires further investigation. This similarity may occur due to other individuals with similar information, such as namesakes.
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What should I do if a Red Flag is identified in AML Screening?
AML screening results are categorized as follows:
No matching individuals: "No Matches (Not Screened)"
Matching individuals: "Red Flag"
The specific reasons for a Red Flag are classified using AML risk icons. When a Red Flag is detected, the following actions are recommended:
Verify whether the user and the individual in the AML report are identical (e.g., by comparing facial images).
Establish internal policies for classifying customers based on each risk icon.
For instance, users with a bankruptcy history (INS) may be acceptable, but politically exposed persons (e.g., PEP-LINKED, PEP-FORMER) should be rejected.
If it cannot be definitively determined that the user is not the flagged individual, they are typically considered the same person.
For detailed information on AML Risk Icon, please click here.
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Can a Red Flag appear in AML Screening even if the individual is different?
AML results are determined by calculating the similarity of identity information. If any result exceeds the threshold score, a Red Flag is triggered. Therefore, a match may occur even if the individual is not the same but has similar identity information.
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How are costs incurred when AML is enabled?
AML is automatically triggered only when certain conditions are met (see the next question below for details). The cost for each AML execution can be confirmed through the ARGOS sales representative.
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Can I start using the AML feature immediately by turning it on from the dashboard?
Enabling the feature does not mean it will run on all submissions. AML is triggered only when all of the following conditions are met:
- The project has AML-enabled
- The submission has the full name of the applicant
- The submission is in "Approved" status