Why use AML technology?
AML is a complex process that brings together documents, people, government registers and transactions to form a complete picture of a client and their risk. And that process does not stop after onboarding. Most firms will need to re-check, re-verify and reassess clients regularly throughout the relationship.
Manual systems can work for a while, but they rarely scale. Most Tranche 2 entities find the pressure starts to build when volume increases, someone’s on leave, or audits and reporting obligations start piling up.
AML tools help automate, structure and strengthen these workflows so that you are not starting from scratch each time.
Whether you are at the start of your compliance journey or looking to improve how things run day-to-day, here is a guide to the main types of AML tools and how they support your obligations.
A quick guide to AML technology
1. Electronic Identity Verification (eIDV)
What it does
Verifies a person’s identity using their name, date of birth and, if needed, a live check against government-issued ID.
How it helps
Reduces manual document collection and verification workload by automating the ID check process. Supports fast, mobile-friendly onboarding with high pass rates, while maintaining compliance. Frees up staff to focus on exceptions, not routine checks.
2. Risk Assessments
What it does
Scores each client based on your business’s risk model and helps guide what steps to take next.
How it helps
Applies your internal risk criteria consistently across all clients, reducing subjectivity. Auto-calculates results, prompts enhanced due diligence when required and creates a clear, auditable record that supports defensible decision-making during reviews or inspections. Can also trigger further document or information requests in some systems.
3. PEP, Sanctions and Adverse Media Screening
What it does
Checks clients against global watchlists and news sources for known risks.
How it helps
Automates screening and ongoing monitoring against up-to-date lists and media sources, reducing the risk of missing red flags. Uses false positive suppression and alert prioritisation to cut noise and make reviews faster and more focused. Simplifies documentation for audit and reporting.
4. KYB and Complex Entity Visualiser
What it does
Maps out company ownership by pulling real-time data from company registers.
How it helps
Replaces messy manual corporate searches with a clear visualisation of the entity structure. Helps you identify where further checks are needed (e.g. trusts, SMSFs, foreign holdings), and supports faster decision-making for complex clients like businesses or investment vehicles.
5. UBO Identification
What it does
Identifies the individuals who ultimately own or control a client entity.
How it helps
Calculates ownership percentages and flags individuals who meet the beneficial ownership threshold. Connects these individuals to identity checks, making it easy to track who has been verified and who still needs to be. Reduces risk of missing UBOs due to complex shareholding. Usually connected to the KYB and complex entity visualiser.
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It's vendor agnostic, cuts through the hype and maps out exactly how different AML tools fit into real-world compliance workflows. This guide will help you make smarter, faster and better decisions the first time.
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6. Registry Extraction Tools
What it does
Fetches company filings, deeds and shareholder records from official sources.
How it helps
Automates the collection of reliable corporate data and documents, eliminating the need to search across multiple registries manually. Saves hours of admin time, ensures accuracy and keeps the supporting documents organised and attached to the client’s file.
7. Company Monitoring / Streaming APIs
What it does
Tracks changes to a client’s structure or directorship over time.
How it helps
Flags material changes such as new shareholders or directors in real-time, so you can reassess the risk or update due diligence as needed. Helps you maintain compliance with ongoing monitoring requirements and avoid missed changes that could trigger a reporting obligation.
8. Case Management Systems
What it does
Keeps all KYC activities and documents in one place.
How it helps
Centralises your compliance work across all clients, giving visibility into case status, outstanding tasks and risk indicators. Supports oversight, internal handover, and escalations, while auto-building an audit trail that meets AUSTRAC record-keeping obligations.
9. Ongoing Customer Due Diligence (OCDD)
What it does
Watches for client changes that affect their risk profile and triggers re-verification.
How it helps
Automates the review cycle by flagging events like ID expiry, company structure changes or updates to beneficial owners. Reduces reliance on manual reminders or spreadsheets and ensures you stay compliant with requirements to refresh and reassess customer due diligence.
10. Transaction Monitoring
What it does
Monitors financial behaviour to detect unusual or suspicious activity.
How it helps
Continuously analyses transactions against expected client behaviour, flagging anomalies like large cash deposits, rapid fund movements or unusual jurisdictional patterns. Reduces the need for manual bank statement reviews, supports timely suspicious matter reporting to AUSTRAC and provides a documented basis for escalation or investigation.
One size doesn’t fit all
Not every firm will need every tool. And not every firm is ready to invest in a full platform from day one. What matters is that you understand where your risks lie, define your policies, procedures and workflow, and only then choose tools that can help reduce that risk without adding more complexity.
“Technology is essential for scale and consistency in AML, but it only really works if you first understand your risks and processes. You can’t just buy your way to compliance.”
Matt Kennedy, Director, EY Australia ( webinar AML & Tranche 2: Preparing Your Business for the Next 12 Months
Final thought
It’s easy to buy AML tech. The harder part is making sure it fits your business, aligns to your obligations and solves the right problems. Used well, the right tools do more than help you meet the rules. They give you structure, consistency and confidence as well as removes a significant portion of the repetitive admin.
If you are preparing for Tranche 2 compliance, now is the time to understand what is available, what you actually need and what will grow with you over time.
About First AML
First AML comes from the perspective of both a technology provider, but also as compliance professionals. Prior to releasing, First AML’s all-in-one AML workflow platform, we processed over 2,000,000 AML cases ourselves. Understanding the acute problem that faces firms these days as they try to scale their own AML, is in our DNA.
That's why First AML now powers thousands of compliance experts around the globe to reduce the time and cost burden of complex and international entity KYC. Source stands out as a leading solution for organisations with complex or international onboarding needs. It provides streamlined collaboration and ensures uniformity in all AML practices.
Keen to find out more? Book a demo today!