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Banking Knowledge | What is Upgraded Version of Anti-Money Laundering System (goAML)? How it Works? Explain



1) What is Anti-Money Laundering?
Anti-money-laundering refers to a set of procedures, laws and regulations designed to stop the practice of generating income through illegal actions. Though anti-money-laundering laws cover a relatively limited number of transactions and criminal behaviors, their implications are far-reaching.

The term “anti-money laundering” specifically refers to all policies and pieces of legislation that force financial institutions to proactively monitor their clients in order to prevent money laundering and corruption. These laws also require both that financial institutions report any financial crimes they find and that they do everything possible to stop them.Anti-money laundering laws entered the global arena soon after the Financial Action Task Force was created. The FATF was responsible for the creation of most anti-money laundering standards, and it made a framework for countries to follow. 

2) What is goAML?
Money laundering and the financing of terrorism are global problems that can threaten the security and stability of financial institutions and systems, undermine economic prosperity and weaken governance systems.
The goAML application is a fully integrated software solution developed specifically for use by Financial Intelligence Units (FIU's) and is one of UNODC's strategic responses to financial crime, including money-laundering and terrorist financing. Financial Intelligence Units play a leading role in any anti-money laundering regime as they are generally responsible for receiving, processing and analyzing reports made by financial institutions or other entities according to the requirements of domestic anti-money laundering laws and regulations. Such reports and other information gathered by FIU's often provide the basis for investigations into money laundering, terrorist financing and other serious offences. goAML is specifically designed to meet the data collection, management, analytical, document management, workflow and statistical needs of any Finance Intelligence Unit. The goAML application was developed by the Information Technology Service (ITS) of UNODC in partnership with the UNODC Global Programme Against Money Laundering, Proceeds of Crime and the Financing of Terrorism (GPML).
The goAML application is a UNODC strategic response to financial crime including money laundering and terrorist financing. The goAML application has been developed by the Enterprise Application Center Vienna (EAC-VN) of UNODC in partnership with the UNODC Global Programme Against Money Laundering. It is an integrated database and intelligent analysis system intended for use by Financial Intelligence Units worldwide. (Source: unodc.org)
An FIU receives data from financial institutions and other reporting entities in the form of:
  • Cash Transaction Reports (CTR)
  • Suspicious Transaction Reports (STR)
  • Electronic Funds Transfer Reports (EFT - including International Funds Transfer Reports)
  • List-based reports such as reports generated from lists of known terrorist identities.

Objectives of goAML
  • Assists countries to meet international standards by establishing effective Financial Intelligence Units.
  • Provides a uniform and standard AML platform to fight money laundering.
  • Designed as a modular system to fit the needs of any FIU irrespective of size.
  • An integrated system which can replace several disparate solutions.
  • Helps reduce the learning curve for new users with its standard graphical user interface on all goAML screens.

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