Financial crime is evolving. But the good news is, so are the tools designed to stop it. For UK businesses operating in regulated sectors, anti-money laundering (AML) screening solutions have become a necessity, not a nice-to-have.
In this guide, we’re going to answer the main questions around AML; What exactly should you expect from a modern AML solution? How do you ensure it integrates smoothly into your wider compliance ecosystem? And which features really matter when evaluating your options?
What is AML screening - and why does it matter?
AML screening refers to the process of checking individuals and organisations against official watchlists, sanctions databases, and politically exposed persons (PEP) lists to detect potential financial crime risks. It’s a core part of any business’ broader Know Your Customer (KYC) and due diligence obligations.
Put simply, AML screening helps you answer a vital question: Can I trust this customer, partner, or transaction?
In the UK, AML regulations apply to a growing number of sectors - not just traditional financial institutions. If your business handles money, facilitates payments, or provides financial-like services, you may be required to carry out ongoing AML checks under the Money Laundering Regulations. For full compliance requirements, always refer to official guidance from HM Treasury and the FCA.
Core features of effective AML screening tools
Not all AML solutions are created equal. The strongest tools strike a balance between thoroughness and efficiency - helping your team stay compliant without drowning in false positives or clunky interfaces.
Here’s what to look for:
1. Sanctions and PEP screening
A foundational feature. The solution should continuously scan multiple global and national watchlists (including OFSI, UN, HM Treasury lists) and flag entities that appear on them. PEP screening ensures you’re aware when dealing with individuals in high-profile or high-risk roles.
2. Real-time monitoring
Rather than a one-time check at onboarding, real-time monitoring helps businesses detect suspicious activity as it happens - flagging changes in customer behaviour, updated sanctions lists, or new risks.
3. Risk scoring and tiered workflows
Not every alert should trigger the same response. Good systems assign risk scores based on factors like geography, transaction size, and customer profile. This allows for automated triage, with only high-risk cases escalated to compliance teams.
4. Flexible rule engines
Businesses don’t all face the same risks. Your AML tool should let you customise rules, thresholds, and escalation paths based on your own risk appetite and regulatory requirements.
5. Audit trails and reporting
If regulators come knocking, you’ll need clear documentation. Quality AML systems generate timestamped records, decision logs, and compliance reports at the click of a button.
Benefits of using AML screening solutions
The obvious benefit? Staying on the right side of the law. But there’s more to it than just ticking boxes.
Reduced fraud risk
By screening customers, suppliers, and partners before onboarding - and monitoring their behaviour after - you can reduce your exposure to fraud, money laundering, and other illicit activity.
Smarter compliance
Automated tools cut down on manual work, freeing up your compliance team to focus on genuinely complex cases. Plus, they help ensure consistency across teams and departments.
Improved customer trust
In today’s climate, being seen as a secure and compliant business is a competitive advantage. Customers and partners are more likely to trust - and stay with - organisations that take financial crime seriously.
Operational efficiency
Done right, AML doesn’t have to be a bottleneck. Good tools integrate into your existing systems, reduce duplicate effort, and speed up onboarding without compromising rigour.
Common implementation challenges (and how to handle them)
Of course, adopting new AML tech isn’t without its hurdles. Here are a few common snags - and how to get ahead of them.
Data quality
Poor input leads to poor output. Incomplete or inaccurate customer records can throw off your screening results. Before you switch on a new tool, make sure your data hygiene is in order.
False positives
Too many alerts can overwhelm your team - and lead to important ones being missed. Look for a solution that uses intelligent matching algorithms and learns over time.
System integration
Will the tool work with your existing CRM, onboarding process, or payments engine? If not, you risk duplicating effort or missing key checkpoints.
Regulatory change
AML regulations are dynamic. You need a vendor that stays up to date - and keeps you up to date - with the latest requirements and industry best practices.
Choosing the right AML screening solution
There’s no one-size-fits-all answer. The best solution for your business will depend on your industry, size, risk profile, and internal resources.
That said, here are a few questions worth asking any vendor:
- Can the tool be tailored to your specific risk model?
- Does it cover the jurisdictions you operate in?
- Is there a clear pricing structure - with no surprises?
- What onboarding and support do they offer?
- How do they handle false positives and accuracy?
- Are updates automatic? And how often are watchlists refreshed?
The more transparent and collaborative the vendor, the more confident you’ll be in your decision.
Stay compliant and secure with built-in transaction monitoring
At Edenred Payment Solutions, we’re focused on making fraud prevention seamless and secure for both our clients and their own customers. Our deep understanding of the UK and EU regulatory landscape allows us to provide meaningful guidance that aligns with both local compliance expectations and evolving industry standards. Our goal is to keep our clients compliant at all times, while they can focus on delivering the payment experience their users expect.
Security isn’t an afterthought – it’s built into every stage of our services:
- Stay compliant with UK AML laws (including the Money Laundering Regulations 2017) and global standards like FATF and 6AMLD.
- Detect suspicious activity in real time - flag structuring, unusual patterns, or out-of-profile transactions automatically.
- Protect your business from fraud, money laundering, and reputational risk.
- Meet partner expectations - whether you’re working with an EMI, PSP, or embedded finance provider, our monitoring meets their requirements too.
- Keep full audit trails for easier reporting, investigation, and SAR filing.
Integrate seamlessly with your onboarding, KYC, and payment systems to monitor the entire user journey.
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