AML General

What is AML screening?

AML screening is a process of filtering the possibility of risk related to money laundering or terrorist financing. You can differentiate a customer who is good to move on to next on-boarding step, who needs a further review.

What does 'Red Flag' mean?

The standard for AML screening is 'Is there anyone in the database who has a similar identity information over a certain score?'. Please refer to the AML Screening Threshold for detail. Argos informs of an applicant whose score exceeds the threshold, calculates the similarity score based on name, birth date and nationality. If it is 'similar', the Red Flag may pop up, so other person with similar identity information or person with the same name may be screened.
It does not mean that the applicant has a money laundering risk, but the applicant has similar data to someone in AML database so needs further review to see if it is the same person.

What needs to be done with Red-Flagged users?

AML screening results are guided in two ways. The first is result: 'No Matches(Not Screened)' when no matching results found from the database, and 'Red Flag' if there is a result. The second is risk icon classifying the type. AML Risk Icons explain why the person is involved in money laundering for what reason.
Generally, Argos KYC recommend next on-boarding process of red flagged users as follows.
  1. 1.
    Verify that the applicant and the person in the AML report are the same person. (Compare the face when provided at the report)
  2. 2.
    Establish criteria for classifying customers based on the risk icons. For example, insolvency is good to go but politicians(PEP) are not.
  3. 3.
    When you can't judge that it's clearly someone else, generally they are considered as the same person.