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AML And KYC Solutions Development in 2024

June 30, 2021
Updated: February 28, 2024

With money laundering, terrorist financing, electronic crime, and criminal economic violations on the rise, Anti-Money Laundering(AML) and Know Your Customer KYC solutions are now more relevant than ever. 

Financial institutions, whether big or small, are encountering rising compliance costs and increased security breaches.

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All these have been a significant concern to governments across the globe. To reduce working with high-risk clients and ensure seamless compliance with laws and regulations, financial institutions quickly adopt intelligent, data-driven, and custom AML software.

Anti-money laundering market: The latest trends 

When COVID-19 hit in 2020, the global anti-money laundering solutions market size was estimated to grow from USD 2.2 billion to USD 4.5 billion by 2025

anti-money laundering solutions market size was estimated to grow from USD 2.2 billion to USD 4.5 billion by 2025

As more people adopted the digital lifestyle due to government-set lockdowns, there arose an extensive need for anti-fraud regulations to inhibit criminal economic activities on digital payment-related matters. 

The rules getting stricter meant violation of these regulations would give rise to substantial fines on perpetrators. 

As a result, the demand for advanced AML solutions and KYC compliance kept increasing, and the pandemic continues to be a key factor contributing to AML and KYC solutions market growth. 

Let’s look in more detail at the key trends prevailing in the AML market:

  • Adoption of AI, ML, and Big Data in the development of AML and KYC solutions

AI, ML, and Big data technologies are proving to be efficient in implementing AML solutions. The use of AI-powered anti-money laundering systems improves the reduction of false positives. How, you ask? 

AML developers designed the system with the ability to recognize suspicious and irregular networks of transactions. 

Once an irregularity is detected, these transactions will be highlighted for investigation. If the criminals change their method of operation, the AI also modifies to maintain a high number of true positives. 

Machine Learning (ML), a branch of Artificial Intelligence, enables computers to learn and improve accuracy when exposed to new data without being programmed to do so, especially in Transaction Monitoring (TM). 

ML on the other hand can help identify behavioral transitions in customers, money-laundering profiles, and suspicious transactions. 

Anti-money laundering software solutions used by banks also use Big Data engines that gather external data sets from different sources, including real-time transactional data and Know Your Customer (KYC) information. 

The data is then evaluated and checked for possible criminal activities. To achieve this, some are now Ukraine outsourcing to develop Know Your Customer software and for AML development without breaking the bank.

  • Integration of Scan-based IDV

KYC verification has undoubtedly become a necessity in monitoring customer activities, especially in the last ten years. Scan-based digital identity verification (IDV) solutions as part of the KYC solutions and tools have become a market trend. 

Because the identification is all being done in real-time, it will assure sufficient KYC processes and avoidance of possible fraud.

  • Larger market size for the on-premise segment

In previous years, the on-premise segment controlled the market with more than 50% share of the global revenue. 

The on-premise implementation of anti-money laundering solutions gives organizations complete control over data, platforms, systems, and applications that can easily be managed by an in-house IT department and provide the protection they need from fraudulent activities. 

US AML market size by deployment
Source <a href=httpswwwgrandviewresearchcomindustry analysisanti money laundering market>Grand View Research<a>

What is the difference between AML and KYC solutions?

AML and KYC terms are frequently used interchangeably by some who assume the words mean the same thing. However, this is not so because AML and KYC significantly differ in their meaning, although both work hand in glove within the regulatory process. 

Financial organizations leverage this relationship to carry out their compliance program through anti-money laundering software. 

Know Your Customer (KYC) is the process of verifying a customer’s identity. Fintech institutions will gather all the necessary data required to prove one’s identity in order to evaluate any threat a customer might have. 

During client onboarding, the KYC process certifies that the client is truthful about both identity and the business they are involved in. 

Know Your Client technology requires the customer to produce documents such as an ID card with a photo of the applicant and address proof. 

On the other hand, AML (anti-money laundering) encompasses all regulatory processes that organizations must execute to do business legitimately, such as criminalization, KYC, deposit holding period, record management, and many other processes. 

In short, KYC is a compliance process that lays the foundation of a more comprehensive AML analytics framework because once a client has been identified, risks can now be managed effectively.

What is anti-money laundering software, and why is it important?

Anti-money laundering software (AML software) is used in the legal and finance sectors to help organizations detect and investigate malicious activities pointing towards money laundering. 

Daily, financial companies process a vast number of transactions, yet they must comply with AML regulations. 

Thus, to ensure compliance, organizations require advanced AML software that can scan through a transaction or a series of transactions in real-time from different perspectives and pick out suspicious activities with efficiency and accuracy. 

This explains the rise in anti-money laundering software development.

How does it work?

AML software assists in the prevention of money laundering and financial crimes through automated screening, risk management, and continuous monitoring. The software should effectively recognize malicious transactions based on both static and flexible sets of rules. 

Additionally, anti-monitoring software should receive alerts via API or email to identify and quickly respond to malicious activity and high-risk transactions from clients. 

Using Artificial Intelligence enables the system to improve the process of monitoring transactions. AI and advanced ML algorithms can automatically monitor vast amounts of media lists and sanctions and rapidly notice possible financial crime risks.

For compliance’s sake, a technology solution should also be able to take in data from third-party documentation and help implement regulatory screening requirements.

What are the essential elements of an AML solution?

To create AML and KYC solutions that are effective and adhere to regulations, the following elements have to be considered:

  • KYC: this process involves verifying a client’s identity and considering possible risks of putting them onboard. 
  • Record-Keeping: this element is determined by a region’s set of regulations and is attained by archiving historical records for a specified period. 
  • Suspicious Activity Monitoring: effective monitoring of a client’s account. 
  • Customer Behavior: examining a client’s transactions pattern. 
  • Customer Due Diligence (CDD): certifying the customer’s true identity before opening an account by verifying documents such as driving license, passport, and recent utility bills. 
  • Watch-list filtering system: this element helps financial organizations execute the stipulated regulations and stay up to date with any upgrades on the blacklists’ content and regulations. 

It can filter all customers and transactions in regard to every single kind of blacklisted entity.

key elements of AML solurions

How does the KYC system work?

Know Your Customer (KYC) regulations can protect financial organizations from handling illegally obtained funds. But how does KYC work, and how does the process go? 

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A financial institution will collect important KYC information such as that listed below:

Identity — Full name, date of birth, address, nationality.

Source of funds — Financial institutions may need to know the source of money or whether you will be depositing cash or making a bank transfer. 

Links to illicit activity — Financial companies may conduct background checks to view if a customer is connected to any kind of criminal financial activity.

Political status — Every person is checked against a list of Politically Exposed Persons to confirm your identity or check whether you are closely related to any political person.

Know Your Customer: Why it matters

After an applicant has provided all the information during the onboarding process, the institutions will check it for potential matches with politicians, criminals, and other wanted persons. 

The matches will be examined for false positives. If the software flags you, the financial institution has a right to investigate you through responsible authorities. 

KYC reduces fraud that results due to unknown identity and prevents money laundering and other financial crimes. 

With KYC documents in place, lenders can carry out a risk assessment by identifying previous financial history. Therefore, it is crucial to build a know your customer solution.

How do AI and RPA help to enhance the KYC system?

Artificial Intelligence (AI) and Robotic Process Automation (RPA) in financial institutions optimize KYC in AML by improving data collection and input. 

After the system obtains data from different sources, it automatically turns them into user-friendly records for additional analysis. With RPA, data is streamlined, and financial institutions can focus on what is essential, hence speeding up customer reviews.

features of fully automated KYC solutions
Source KYC automation using AI <a href=httpswwwresearchgatenetpublication330619740 KYC automation using AI>research<a> by Varun Mittal Duke University

How to develop and implement AML/KYC solution

The efficient implementation of AML/KYC solution requires sophisticated search scenarios and the elimination of unnecessary database access by cleaning out insignificant queries while paying attention to essential data to ensure compliance. 

The solution will require the newest online data.

The verification process can be initiated by a Business Process Management system (BPM), if an investigator requests This system can examine records in banking systems and external documents to detect, investigate, and manage suspicious transactions.

Successful implementation will involve the following processes:

  • The setting of process workflows 
  • Drawing up internal methodologies and policies 
  • Training: AML, BPM Engine, Standard BPMN 2.0 
  • Compliance testing and quality assurance of the current configuration of an AML system 

When a client has been flagged, the process will start by entering the requested customer’s personal data, which can be thoroughly checked against a blacklist or sanctions list. 

If a match is confirmed, the information is submitted to the Financial Analytical Bureau. If no match is detected, risk indicators from the customer’s database are loaded using a decision table. 

From here, the IT team will decide if there is any need for further investigation. Alerts that require the controller’s attention will be readily listed in the web interface. 

For such an effective system to work seamlessly, there is a need to develop a custom KYC solution that caters to all essential KYC elements an organization needs to adhere to.

Top 10 Anti-money laundering software tools & providers

Anti-money laundering software development has helped to protect financial institutions from fraud and other forms of financial crime. The list below shows the top 10 AML software for banks.

  1. FileInvite: automates collecting AML documents from the customers who are required to create and send a FileInvite with relevant information. 
  2. Clear View KYC: offers individual and entity name screening against ten international sanction lists
  3. ProcessGene GRC Software Suite: used to assure compliance to regulations and policies, carry out internal audits and manage corporate governance programs.
  4. ML Verify: a cloud-based anti-money laundering and client due diligence platform that simplifies the routine and assists businesses to integrate customers easily.
  5. Biz4x by 4xLabs: provides access to live market data, compliance features, digital storefronts, and fully audited transaction systems. Biz4x doesn’t come with a free version.
  6. SAS Anti-Money Laundering: a Cloud-based anti-money laundering solution that offers analytics, data management, and malicious activity monitoring tools. 
  7. Actimize: helps to detect and investigate money laundering and fraud. It offers real-time fraud prevention techniques that support fraud management.
  8. AML Manager: investigates suspicious activity based on transaction monitoring, behavioral profiling, and peer group analysis.
  9. AMLcheck: an advanced technological solution that enforces legal requirements by recognizing people in the onboarding process and scoring the client’s profile from the database to detect suspicious behavior.
  10. Token of Trust Identity Verification: provides merchants with a range of identity verification tools, including Document checks, watch list screening, phone verification, facial verification, ID record checks, and online social network verification.

Reasons to outsource AML/KYC solutions development and implementation

AML and KYC solutions require a business-minded, cost and time-effective option to develop. And outsourcing is definitely one of the smartest options to do that.

The next question is – what is the right destination for hiring dedicated software development teams to build AML apps?

Ukraine has received global recognition in the technology industry, so it’s a pretty good idea to start outsourcing here. The nation holds the 20th position in the Global Services Location Index by A.T. Kearney. 

In 2017, Ukraine was named United Kingdom’s “Offshoring Destination of the Year” by the Global Sourcing Association (GSA) UK. 

And in the same year, 13 Ukrainian IT companies were on the Global Outsourcing 100 list by the International Association of Outsourcing Professionals (IAOP). 

Why should you outsource to Ukraine?

Here are a few benefits of outsourcing your AML KYC solutions development project to Ukraine.

  1. It is cost-efficient. Ukrainian IT firms provide a very cost-efficient service with no compromise on quality.
  2. Professional expertise. Tech education in Ukraine is of high quality and many communities have IT clusters that bring together the best experts and educational institutions to help specialists develop tech skills.
  3. More time to focus on your core business. You can count on the professionals to monitor the development process and compliance in the best manner possible, so you can concentrate on their primary business.
  4. Fintech consulting services. Having many years of experience under their belts, some Ukrainian IT firms can give your businesses some good advice regarding the development, implementation, or management of modern technology.
reasons for software development outsourcing to Ukraine

Relevant Software is an IT company that provides a wide range of IT services and KYC solutions to a vast number of companies across markets. 

The quality of AML/KYC Software has always been our guiding principle, and our services are designed to meet the most demanding customers’ needs. 

Relevant Software provides practical and high-quality KYC solutions for the industry through our team of experts who build AML and KYC functions to afford businesses sustainable growth. We offer custom AML compliance and KYC solutions built to meet the needs of every user. 

Relevant’s dedicated software development teams have developed many fintech applications that are user-friendly and comply with regulations. 

Our fintech software development services also include wealth management, payroll fintech tools, banking software, and P2P lending so that your business can achieve its desired targets. 

Whenever we build fintech apps, we ensure they meet the customer’s needs. 

We conduct thorough research during financial app development, focusing on security and launching the beta version. We’ll provide strong security systems that inhibit penetration, data leaks, and malware.


The battle against financial crime might never cease entirely, but the adoption of AML and KYC solutions will continue to curb this threat. 

With AML integration in organizations and an innovative Know Your Customer system that ensures all KYC requirements are met, your business will be safer from financial crime and well-guided compliance-wise.

All you need is a highly skilled and experienced team. At Relevant, your business can implement a user-centered AML/KYC solution and any other high-grade fintech project with so much ease. Get in touch with us today!

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Written by
CEO at Relevant
Andrew Burak is the CEO and founder of Relevant Software. With a rich background in IT project management and business, Andrew founded Relevant Software in 2013, driven by a passion for technology and a dream of creating digital products that would be used by millions of people worldwide. Andrew's approach to business is characterized by a refusal to settle for average. He constantly pushes the boundaries of what is possible, striving to achieve exceptional results that will have a significant impact on the world of technology. Under Andrew's leadership, Relevant Software has established itself as a trusted partner in the creation and delivery of digital products, serving a wide range of clients, from Fortune 500 companies to promising startups.

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