Question 1

What is Anti-Money Laundering?

Accepted Answer

Anti-money laundering (AML) refers to the set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. AML obligations apply to financial institutions, payment processors, acquirers, issuers, and fintechs that handle financial transactions. Regulators such as central banks, FATF, and card schemes like Visa and Mastercard enforce AML compliance requirements globally. Failure to comply can result in substantial fines, license revocation, and reputational damage.

Question 2

How does AML work?

Accepted Answer

AML works through a combination of automated transaction monitoring, risk scoring, and investigation workflows that together make it difficult for illicit funds to pass through undetected. Financial institutions apply rules-based controls and AI models to flag behaviour inconsistent with a customer's or merchant's known profile. When a suspicious transaction or behaviour is identified, compliance teams investigate the alert and file a Suspicious Activity Report (SAR) if required by their regulator. Fraudio's AML solution handles all of these steps within a single platform, from automated alert generation to case management to SAR download. The result is faster investigations, fewer false positives, and a complete audit trail for every decision made.

Question 3

What are examples of money laundering?

Accepted Answer

Common money laundering examples include structuring (also called smurfing), where large sums are broken into smaller deposits to avoid detection thresholds. Another example is layering, where funds are moved rapidly across multiple accounts or jurisdictions to obscure their origin. Transaction laundering — where a merchant processes payments for undisclosed or illegal goods under a legitimate-looking business — is a major threat for payment acquirers. Shell company fraud and trade-based money laundering, where goods are over- or under-invoiced in cross-border trade, are also widely documented typologies. Fraudio's AI models are trained on billions of real transactions to detect all of these patterns as they emerge.

Question 4

How to prevent money laundering?

Accepted Answer

Preventing money laundering requires a combination of robust customer due diligence (KYC/KYB), real-time transaction monitoring, sanctions screening, and automated alert management. Effective AML prevention relies on AI-powered detection that adapts to evolving criminal typologies — static rule-based systems alone are insufficient. Payment companies should deploy solutions that monitor all payment flows, including cards, instant payments, transfers, and payouts, across every entity in their portfolio. Fraudio's AML solution integrates with PEP lists, sanctions databases, and adverse media feeds to give compliance teams a 360-degree view of risk. With Fraudio, customers can go live with real-time AML monitoring in weeks, not months.

Question 5

Does Fraudio use AI in Anti-Money Laundering?

Accepted Answer

Yes, Fraudio uses advanced AI and machine learning at the core of its anti-money laundering solution, combining supervised models, unsupervised anomaly detection, and link analysis. Models are trained on billions of transactions from across Fraudio's entire customer network via its patented centralised dataset — not just a single institution's isolated data. This network effect means Fraudio's AML AI starts detecting threats from the first transaction processed, with no lengthy ramp-up period. The AI is fully explainable, so compliance teams can document exactly why a transaction was flagged. Self-learning models continuously update as new money laundering patterns emerge, ensuring protection remains current without manual intervention.

Question 6

Who needs an Anti-Money Laundering solution?

Accepted Answer

Any company that processes, moves, or facilitates financial transactions is typically subject to AML regulations. This includes card issuers, merchant acquirers, payment facilitators (PayFacs), neobanks, digital wallets, remittance companies, and instant payment providers. Regulatory requirements vary by jurisdiction, but frameworks such as PSD2, FATF guidelines, and central bank mandates apply across Europe, the Middle East, Asia-Pacific, and Latin America — all markets Fraudio actively serves. Companies obtaining an EMI (Electronic Money Institution) license are required to have a compliant AML transaction monitoring solution in place before operating.

Question 7

How long does it take to implement an AML solution?

Accepted Answer

Fraudio's AML solution can be integrated and operational in as little as a few weeks via API connection — compared to the 5 to 14 months required by many legacy AML platforms. The integration process begins with a kickoff call, followed by technical API connection, data quality validation, and dashboard configuration. Customers with historical transaction data can provide it at setup to enable more precise model calibration from day one.

Anti Money Laundering Solution

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