Insights Thought Leadership

How Automated Fraud Solutions Address Fraudulent Cash Transactions and Money Laundering Threats

Addressing Cash Transaction Fraud and Money Laundering with Automation


Fraud, Predictive Analytics, Automation

As fraud continues to plague the financial services industry, more and more financial institutions are utilizing automated fraud detection solutions to help protect their organizations and remain in compliance with regulatory requirements. One benefit FIs derive from these solutions is the identification of money laundering and terrorist financing activities. The addition of comprehensive case management and integrated workflow helps FIs reduce regulatory risks, reputational risks, and financial losses.

Automated fraud solutions can help institutions meet regulatory requirements including Know Your Customer (KYC), sanction screening and risk assessment, and regulatory reporting. Cash aggregation functionality identifies reportable transactions throughout the branch network, triggering reports, populating transaction data, prompting frontline employees to gather required information, and performing data validity checks. Cash aggregation also gives FIs the ability to configure dollar thresholds for customer identification (ID) prompts and identify abnormalities with reviews of daily cash activity.

In addition, automated fraud solutions can address current and ongoing compliance requirements and serve as a key tool in the financial institution’s AML program. These systems automate cash reporting by:

  • Aggregating cash transactions based on account number, tax ID number, or ID for persons involved;
  • Enforcing data collection for reporting;
  • Systematically creating CTRs for analysis and electronic filing by back-office staff;
  • Generating MILs for review.

Utilizing an automated fraud detection solution to more accurately detect and prevent fraudulent cash transactions and money laundering threats benefits FIs monetarily and with customer relationships. Institutions can better draw the line between risk and customer relationship value, improving customer satisfaction. Customers need to know they can trust their bank to protect their funds, and that they can access their funds as needed.

For more information, download the “Changing the Game in Fraud Preventioninterview with David Engebos, President and COO of ARGO.

Download ARGO's interview with David Engebos