In its most basic definition, cloud computing technology is the provision of computing services such as servers, storage, databases, network, software over the internet to provide faster innovation and economies of scale. Anti-Money Laundering companies use cloud computing technology. Moreover, private cloud computing technology refers to cloud computing resources that financial institutions can use. A cloud where private cloud computing technology services and infrastructure are kept on a private network. Thanks to this private cloud computing technology, the probability of cybercrime are reduced based on data stored on the private network, and it can also prevent money laundering and terrorist financing risks.
What is the meaning of Cloud Computing Technology for AML?
Cloud computing technology consists of three basic services: software as a service (SaaS), infrastructure as a service (IaaS), and platform as a service (PaaS), and financial institutions use cloud computing technology through these systems for
money laundering (ML)
solutions. With the emergence of cloud computing technology,
Anti-Money Laundering (AML)
solutions, financial institutions have increased their efficiency and have enabled them to reduce the costs of building an IT infrastructure. With the development of financial crimes, businesses' use of the cloud is growing more widely. On the other side, there are many preliminary views regarding the use of this technology. To give an example of this preliminary view and myths: Cloud computing technology is believed to be less secure and more costly to individuals or companies. On the contrary, it provided more flexible pricing and increased efficiency to the software as a service (SaaS) model companies using cloud computing in
AML compliance programs
. These prejudices are not correct, and companies can find AML solutions using cloud computing technology.
AML Cloud Computing Technology Security
While implementing AML cloud solutions, the personal data of customers are collected as required by cloud technology, which worries companies whether they face the threat of crime. To address these concerns, each country's own regulator has introduced regulations on data protection, which are robust security measures to protect cloud-based AML solutions from companies. However, continuous monitoring addresses the public cloud providers' rapid detection of potential threats and the risks that occur. AML cloud service is mandatory for financial companies to store their data in certain countries, and they can securely provide this data for storage with the AML cloud service because the cloud service stores data locally, not internationally. This prevents big risks that may occur. Furthermore, financial institutions can set passwords to these data stored locally in the AML cloud service. Beyond encryption, multi-factor authentication systems are also used in cloud computing technology to access data stored by the company. With this encryption method, financial criminals cannot easily hack this data, and cybercrime is also prevented.
Why Do Financial Institutions Prefer Cloud Computing Technology AML Solutions?
Cloud computing technology for AML offers financial institutions multiple users can use low-cost solutions and these solutions. With AML cloud solutions, businesses can not only reduce costs but also save time. Cloud computing technology is not complicated, it can be easily understood and used by any financial institution, and it offers fast solutions within AML solutions. The use of Cloud Computing technology for AML solutions in financial companies is increasing every year; one of the reasons for this is undoubtedly the development of technology. Financial Companies can use AML software to comply with AML compliance programs, as well as support compliance with cloud computing technology. By following all these solutions, they can also be protected from regulators' penalties, and they keep up with technology and do not stay behind their competitors, so financial companies prefer to use cloud computing technology.
