5 Key Considerations for Your AML Process

Failing to comply with money laundering regulations poses a serious threat to businesses.

Having an active AML program is essential, and at Credas we believe there are five essential components. Depending on the complexity of your business you may need to expand upon this framework.

5 Key Considerations for Your AML Program

1 – A system of internal controls, awareness and communication

Rigorous internal controls that include policies and procedures should help ensure compliance with AML regulations. Having clear and sufficient knowledge within your business should assist employees in detecting illegal activity.

Independent audits should be completed to identify any discrepancies in financial records, that can indicate suspicious activity. Additionally, this audit control measure can ensure your AML program functioning efficiently.

Your businesses risk assessment should be an ongoing process by which you identify any money laundering risks you face, and to determine the extent of and how to mitigate these risks.

Giving your employees the ability able to communicate openly about your AML processes, will increase trust and transparency can be achieved, ensuring everyone is working effectively to reduce your business risk to AML.

– Appoint a Compliance Officer and build a Build a Culture of Compliance

A compliance officer works to implement and review your AML program. Reporting directly to management, a compliance officer would ideally be trained and qualified in AML requirements, and have access to all necessary resources.

In addition to implementing policies and procedures to support your AML program, consider promoting a culture of compliance within your organisation. Thomson Reuters suggests that six primary factors contribute to a workplace culture that encourages compliance.

Use Effective Technology

Digital solutions can improve an AML program if they complement your businesses’ systems and make it easy for you to process the required checks. With Credas, we have developed a simple solution for AML checks, which integrates seamlessly with your existing systems and processes.

Within your Credas portal, you can view verified documents and data check results. Our technology can also facilitate a quick response to any issues or flags raised about potential clients, allowing you to make an informed decision on the best way to mitigate risk to your business.

– Incident Reporting and Case Management

A system that helps keep track of incidents can make it easier to identify and address risks before they result in serious legal issues.

When employees are aware that their organisation values case management system, they are more likely to report suspicious activity or misconduct.

– Training and Education

A robust and comprehensive training program should be implemented to improve staff awareness of anti-money laundering regulations, spotting suspicious activity, and the steps an employee should take once report this to management.

Regular training programs can keep employees informed on essential reporting requirements and record keeping expectations, helping them understand their role within the organisation’s AML program and the importance of compliance.