How to evaluate an AML system

AML solutions are the tools and processes that help firms meet their anti-money laundering obligations. They range from basic manual checklists and standalone ID tools to fully integrated compliance platforms.

Each firm’s needs will vary — but evaluating your options well is key to ensuring compliance is both effective and manageable.

Why choosing the right AML system matters

The wrong AML setup can slow your team down, increase the risk of errors, or leave compliance gaps. Choosing the right system helps your firm:

• Meet legal obligations under MLR 2017 and POCA
  
• Manage risk consistently across clients and teams
  
• Reduce the manual burden of AML work
  
• Build an audit trail that holds up under review
  

It’s not about ticking every box — it’s about finding what works for your firm’s size, client base, and team structure.

How to assess your AML options

1. Understand the types of solutions available

Manual systems

• Simple to set up, low cost, flexible
  
• Rely heavily on staff knowledge and consistency
  
• Harder to scale and audit
  
• Higher risk of error or missed steps
  

Electronic ID checks

• Useful for high-risk clients or when face-to-face checks aren’t possible
  
• Must meet regulatory standards (MLR 2017 Reg 28)
  
• Should pull from multiple, reliable sources and provide evidence trails
  
• Firms stay fully responsible even when using third-party tools
  

Comprehensive AML platforms

• Provide end-to-end workflows (onboarding, monitoring, reporting)
  
• Automate reminders, record keeping, and audit trails
  
• Often include dashboards and risk scoring
  
• May include features you don’t need — so check fit carefully
  

Fragmented setups

• Combine different tools (e.g. ID checker + spreadsheets + manual risk assessments)
  
• Cost-effective and flexible, but can increase complexity
  
• Require strong internal procedures to avoid missed steps
  
• Risk of scattered records and unclear responsibilities
  

2. Use these key evaluation criteria

Cost and value

• Factor in setup, integration, licences, and ongoing support
  
• Include hidden costs: training, downtime, staff time
  
• Be realistic about internal time savings vs system costs
  
• Avoid paying for features you don’t use
  

Efficiency

• How much time does it save per client?
  
• Can non-senior staff use the system effectively?
  
• Does it support day-to-day operations — or slow them down?
  
• Does it reduce errors and duplicate work?
  

Compliance coverage

• Does it support your CDD, FWRA, and EDD obligations?
  
• Can you record SARs, monitor ongoing risk, and track training?
  
• Is there a clear audit trail of who did what and when?
  
• Is the software updated regularly to reflect regulation changes?
  

Scalability

• Will it grow with your firm?
  
• Can it handle increased client volume without breaking?
  
• Does it work across multiple offices or service lines?
  

User experience

• Is it intuitive and easy to use for staff at all levels?
  
• Are support and training included?
  
• Does it integrate smoothly with your other systems (or create more admin)?
  

Transition planning

• Is there a clear path for switching over from your current setup?
  
• Who will own the project internally?
  
• Can staff training, data migration, and testing be done with minimal disruption?
  
• Are different offices aligned — or will you need to standardise processes?
  

Summary

There’s no one-size-fits-all AML solution — but there is a right fit for your firm.

Start by understanding your current compliance gaps, your team’s needs, and what level of automation or structure will truly help. Evaluate systems not just on price or features, but on how well they improve your workflows, support compliance, and scale with your growth.

Whether you're using manual processes or investing in a full platform, the goal is the same: effective AML compliance that doesn’t become a burden.

This article was summarised by the Firmcheck content team. The original content was written by independent AML expert Ian Waters and is available on our blog.

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