How to Choose AML Screening Tools?
AML screening is a critical step in both Customer Due Diligence (CDD) and Know Your Customer (KYC) processes. It helps businesses detect potential risks by screening clients and related parties against sanctions lists, Politically Exposed Persons (PEP) databases, and adverse media sources.
For regulated entities in Singapore – such as corporate service providers (CSPs), financial institutions, and other designated businesses – choosing the right AML screening tools is not only a matter of operational efficiency, but also a core compliance requirement.
Why Free Tools Are Not Enough
Some businesses attempt to perform AML screening using free websites or by manually searching in search engines. While this might seem cost-effective, regulators often view such practices as failing to exercise proper due diligence. The main issues with these approaches include:
- Incomplete or outdated data – Missing key sanctions or PEP records
- No audit trail – Inability to prove checks were conducted at a given time
- Low efficiency – Manual processes increase the risk of human error
- Non-compliance risk – Failing to meet ACRA or MAS guidelines for AML/CFT compliance
Key Features to Look for in AML Screening Tools
When evaluating AML screening tools, consider the following:
- Authoritative and frequently updated databases – Covering global sanctions, PEP, and adverse media from trusted sources.
- Full audit logs – Ability to generate reports for regulators.
- Integration with your CDD/KYC process – Avoiding isolated checks and ensuring data flows through the compliance workflow.
- Ongoing monitoring capabilities – Automatic alerts for new risks after client onboarding.
- Support for risk-based review cycles – Scheduling periodic CDD updates according to the client’s risk level.
AML Screening in the Context of Full CDD
It’s important to remember that AML screening is only one part of the CDD process. For example, under Singapore’s ACRA guidelines, if a CSP cannot meet a client in person, they must also:
- Conduct a video interview with the client
- Complete a KYC questionnaire to understand the business nature and source of funds
- Perform identity verification on documents
- Maintain an Internal Policies, Procedures, and Controls (IPPC) document outlining CDD, Enhanced Due Diligence (ECDD), and Suspicious Transaction Report (STR) procedures – updated at least annually
- Keep complete records of all compliance activities for audit purposes
How AlgoCandy Helps
AlgoCandy offers more than just AML screening. It is an integrated compliance platform tailored for Singapore’s regulatory requirements, enabling businesses to manage the entire CDD process in four streamlined steps:
- Client Onboarding – Secure online form submission for company, shareholder, and director details.
- Conduct CDD – One-click case creation, AML screening, identity verification, and KYC form completion.
- Complete CDD – Comprehensive risk assessment and standardized report generation.
- Ongoing Monitoring – Automated alerts, periodic review reminders, and continuous risk tracking.
By combining AML screening tools with end-to-end compliance management, AlgoCandy helps CSPs and other regulated entities not only meet legal obligations, but also reduce manual workload and improve accuracy.
Final Thoughts
Selecting the right AML screening tools is more than a checkbox exercise – it’s a safeguard for your business reputation and a foundation for regulatory compliance. Businesses that invest in trusted, data-rich solutions are better positioned to avoid penalties, satisfy regulators, and build lasting client trust.
