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5 Benefits of Using a FRAML Solution

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FRAML, which stands for Fraud and Anti-Money Laundering (AML), refers to the systemic integration of these two critical functions. Financial institutions (FIs) can realize valuable synergies by using the same system to monitor AML and fraud risk. In this article, we’ll dive into how FRAML technology solutions empower FIs to manage financial crime risk effectively and efficiently.  

Key Points 

  1. Enhanced Compliance and Risk Management 

  2. Improved Detection of Financial Crime 

  3. Cost Efficiency 

  4. Enhanced Customer Experience 

  5. Adaptability to Emerging Threats 

1. Enhanced Compliance and Risk Management 

FRAML technology solutions enable organizations to comply with increasingly complex regulatory requirements regarding money laundering and fraud. A FRAML system allows for a unified approach to fraud and money laundering risk, improves detection, streamlines investigation processes and data. When all your financial crime data resides in the same place, it facilitates operational efficiencies in both fraud and AML functions.   

“On the system level, I think it's really interesting when it's integrated, because then you have the data sitting in the same place,” said Robin Lee, General Manager, APAC at Hawk AI. “You can draw interesting insights from that, or run interesting investigations based on that as well.”  

2. Improved Detection of Financial Crime 

FRAML solutions use advanced analytics, machine learning, and pattern recognition to identify suspicious activities that indicate money laundering or fraud. By analyzing transactions in real-time, FRAML technology can detect complex schemes that legacy systems would likely miss. Since fraud often precedes money laundering, FRAML solutions that can tell the whole story give fraud and AML teams a better understanding of money movements. This contributes to richer, more efficient, and more effective reporting.  

 “You can see the fraud taking place, and then you can see the money getting laundered after,” said Lee. “The fact that you can build a story and show that flow of money is powerful stuff.” 

3. Cost Efficiency 

Integrating fraud detection and AML processes can lead to significant cost savings for organizations. Instead of maintaining separate systems and teams for each function, a unified FRAML approach allows for shared resources and streamlined operations. This empowers fraud and AML teams to detect more risk using fewer resources.  

4. Enhanced Customer Experience 

By minimizing false positives, or legitimate transactions mistakenly flagged as suspicious, FRAML solutions can improve your customers’ experience. Faster and more accurate detection of actual fraud or money laundering activities means less disruption to genuine customers, leading to higher satisfaction and trust in the organization. This can be significantly enhanced by leveraging Artificial Intelligence (AI). 

5. Adaptability to Emerging Threats 

Criminals constantly change their fraud and laundering tactics, making it essential for FIs to be able to adapt quickly. FRAML technology solutions are designed to be flexible, allowing for the easy integration of new data sources, analytics models, and regulatory requirements. This adaptability ensures that organizations can stay ahead of criminals and comply with new laws and standards as they emerge. By employing a real-time/API strategy, a FRAML solution provides access to all the latest data. Coupled with dynamic, state-of-the-art applications and artificial intelligence, a FRAML solution empowers fraud and AML teams to respond to and engage with the latest financial crime trends.  

Hawk AI’s FRAML Technology  

Hawk AI’s FRAML technology helps FIs manage financial crime risks effectively and efficiently. FIs using our platform can enhance regulatory compliance, improve AML and fraud risk detection, realize cost efficiency gains, provide a positive experience for legitimate customers, and adapt quickly to emerging threats. 

To learn more, read our FRAML white paper and request a demo today.  


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