The AML Challenge
Governments are under increasing international pressure, to refine, enhance and increase the obligations under existing AML/CFT regimes.
Governments globally are also expanding AML/CFT laws to include other gatekeepers, which are increasingly being targeted by organised crime to launder the proceeds of their criminal activities.
As a result millions of organisation’s across a diverse range of sectors in all 200 Financial Action Task Force (FATF) member countries will need to comply with increasingly money laundering regulations.
At the heart of AML/CFT law and regulation is the Risk Based Approach and a mandatory requirement to perform an Money Laundering /Financing Terrorism (ML/FT) Risk Assessment contemplating multiple factors to identify, assess, mitigate and manage ML/FT risks.
Based on the ML/FT Risk Assessment, organisations must then develop an AML/CFT Program of controls that is proportionate to the identified ML/TF risks and which clearly outline how the organisations address the mandatory requirements, including (but not limited to):
- Governance and oversight of the AML program
- Customer identification / know your customer
- PEP and sanctions screening
- Ongoing customer due diligence
- Transaction monitoring
- Suspicious activity and matter reporting
- Employee due diligence
- AML risk awareness training
- Record keeping
- Company Information
- ML/FT Risk Assessment
- AML Program
- Customer Due Diligence (CDD) Standards
- AML Operating Manual
- Supporting Documents (i.e. glossary, country risk assessment and reference library)
The AML/CFT Program Manual is tailored to over 30 industry sectors and applicable to all regulated entities regardless of their size, industry sector or geographic location.
Using AML Accelerate’s proprietary methodology, leveraging internationally recognised methodologies and frameworks, the AML/CFT Program Manual follows a structured approach to assessing Money Laundering (ML) and Terrorism Financing (TF) risk, documenting and developing controls to mitigate the ML/FT risks in a proportional and pragmatic way.