Anti-Money Laundering Compliance Checklist: Best Practices
Effective Anti-Money Laundering (AML) procedures are a key necessity for required businesses in order to achieve AML compliance. Having strong rules, processes, human resources, and technology in place helps to safeguard the company and create trust in its operations.
What criteria do you use to evaluate KYC Screening? The apparent response is that you avoid being penalised for non-compliance and are able to keep laundered money out of your financial system.
The foundations of AML
Because each jurisdiction has its own set of rules, this post will not provide prescriptive guidelines for each jurisdiction; instead, we'll look at best practices that will help you succeed no matter where you conduct business.
a-Policies in Writing
Don't attempt to make it up as you go along. You don't want to take chances with AML compliance. Consider your policies carefully, say them clearly, and have them written down for all to see (executives, personnel, and regulators).
b-Officer in Charge of Compliance
What is the name of the person in charge of the programme? Assign one person to "own" the system and ensure that processes are followed and updated, reports are submitted, training is up to date, and the system runs smoothly.
c-Training
Every employee who interacts with customers or transactions in any manner should be familiar with the policies and procedures of the organisation. They must be aware of the legal requirements, money laundering strategies, the checks they should do, and how to report suspicious activity.
d-Review
It's easy to get complacent; after all, why change if everything is going well? Unfortunately, it may be too late by the time you discover a problem. Review your programme on a regular basis with an impartial expert, such as a third party or at the very least someone who isn't involved in the day-to-day compliance operations.
AML surveillance
AML Screening does not end with the initial onboarding process. There is a requirement for continuous monitoring. Monitoring is the study of ongoing, continuous actions to verify that they stay compliant.