What does 'Scoring' mean?

Scoring in the context of Anti-Money Laundering (AML) refers to a feature within the software that assigns numerical values or risk scores to customers, transactions, or activities based on predefined risk factors. These factors may include geographic location, transaction volume, frequency of activity, and other relevant criteria that could indicate potential involvement in money laundering or other illicit activities. The software uses scoring algorithms to assess and prioritize risks, enabling organizations to focus their resources on the highest-risk cases. By automating the scoring process, AML software helps improve decision-making, streamline investigations, and ensure compliance with regulatory requirements.