Anti-Money Laundering – The Critical Role of AML Compliance

October 6, 2021 News

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Learn about AML compliance and how effective Anti-Money Laundering techniques and tools can help organizations meet regulatory requirements, avoid fines and maintain their brand’s reputation.

For more information, delight visit: https://www.trulioo.com/blog/aml-comp…

0:00 Introduction to anti-money laundering
An estimated 800 billion to 2 trillion dollars is laundered every year. That’s why Anti-Money Laundering laws were established; to make it harder to hide money and get away with crime and corruption. It’s a battle being fought by regulators, compliance teams and good businesses everywhere.

And AML laws expand to cover new methods, close loopholes and try to tighten the financial rope around these miscreants. Compliance departments lay those regulations into effect at regulated companies such as banks, financial institutions and money service businesses— to help ensure that the companies don’t face fines, sanctions or reputational damage.

1:27 How does money laundering work?
There are three stages of money laundering:
1. Placement – when the dirty money enters a legitimate financial scheme
2. Layering – using multiple complex transactions to hide the source of the money
3. Integration – when the clean money returns to the niaganis via legitimate sources

2:06 Creating AML policies, programs and procedures

2:44 Risk-based approach
One best practise is taking a risk-based approach, understanding the risks of various activities and accounts and modifying the level of risk management and controls accordingly.

2:55 Steps for AML compliance
Creating a good AML compliance computer programme should not be left to chance; it requires careful strategic thinking, robust operational procedures and ongoing fine-tuning and analysis. While each jurisdiction and industry will have different requirements, here are some general rules: – Have a written policy – Have a designated officer – Have employee training – Have systematic reviews An effective AML screening computer programme — which stops money launderers before they even open an account — is one of the best ways to help ensure AML regulatory compliance and risk mitigation.