AML, or anti-money laundering, is an umbrella term that comprises a web of laws, procedures, and regulations. These laws aim at detecting the efforts utilized to acquire illicit finds as legitimate income.

Money laundering focuses on concealing crimes such as small-time tax evasion, financing of designated terrorist organizations, and drug trafficking.

AML legislation is a direct response to the increase in the financial industry. And tools like Anti-money laundering for portable identity help in putting an end to such illicit procedures.

In this blog, we will take an in-depth dive into comprehending AML and what sectors are using AML solutions to fight laundering for good.

AML – the basics

  • AML efforts aim at making it hard to hide profits from crime.
  • Criminals are notorious for utilizing money laundering to make illicit funds look legitimate in the market.
  • To put an end to the problem, AML regulations request financial institutions to create modern systems to easily assess the money laundering risks and detect any kinds of suspicious activities.

Top successful use cases of AML

1- Banking

Custom-developed anti-money laundering for portable identity in banks can significantly reduce the alert volume and enhance the suspicious activity report.

Also, machine learning can come in handy in automating due diligence document reviews. This can noticeably reduce the staff’s time in completing repetitive tasks, allowing them to focus on things that matter the most.

2- Capital markets

In today’s highly susceptible market, capital market firms are looking for ways to lower their exposure to financial crimes and fraud.

Anti-money laundering fragmented identity signals can assist capital firms in detecting, scrutinizing, and reporting any illicit activity from security systems and frauds. This can help in reducing the investigation, and AML technology cost.

3- Insurance

Typically, money launderers will purchase insurance and then submit claims to obtain funds. Most of the time, these frauds utilize products structured as investments, like life insurance policies and variable annuities.

By conducting overfunding or moving money from the policies, launderers establish a stream of checks or wire transfers – all this at just a little cost of early withdrawal penalties. 

4- Retail

Launderers can also use store-front businesses or websites to initiate the payment process and launder the money.

This means retailers can become a part of the criminal activity without realizing a thing. For instance, an e-commerce store-front owner can be used by launderers to process a transaction that originates somewhere else – also known as transaction laundering in technical terms.

Signing off

Were these successful use cases of AML enticing enough for you to think about investing in it? Consider speaking with the experts at Incode to learn more about anti-money laundering fragmented identity signals and incorporate them into your business.

Mark Johnston is the author of this article. For more details about Digital identity verification for financial services please visit our website: