Merging fraud prevention and anti-money laundering
FRAML is not a new phenomenon. The idea that fraud and anti-money laundering (AML) monitoring processes can be consolidated for greater efficiency and effectiveness has been around for the best part of two decades. So why is there now renewed interest in FRAML from a wide set of financial and corporate institutions?

To begin with, financial criminals are becoming more sophisticated, whether it is those defrauding individuals or institutions, or those further downstream who legitimise the ill-gotten gains. And this is making the detection and prevention of fraud and other financial crimes ever more complex with the need for highly customised and focused approaches for each crime.

But there is also a realisation among organisations that to effectively detect and prevent fraud and money laundering, they first must fully understand it. When fraud happens, in most cases, there is by definition money laundering, as criminals use mule accounts, layering techniques and complex transaction patterns to move and disguise the stolen funds. This interconnected nature of fraud and money laundering means that tackling one without addressing the other leaves critical gaps in risk detection and prevention.

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