Newcomer's Guide to the AML Galaxy

The Newcomer’s Guide to The Essential Features of a Robust AML Compliance Program

AML Compliance

In my research to better integrate into the KYC2020 team, I discovered that having an anti-money laundering program in place is a pre-requisite for all organizations these days. Money laundering has serious consequences attached to it and failing to implement strong AML compliance practices in your company will get you in a lot of trouble. But what are some of the requirements of AML Compliance and what do you need to have a robust AML Compliance program in place? Let’s take a look.

AML Training Program and Strong Internal Controls

AML compliance cannot be confined to a single department. It is an organization-wide process. If you want to have a proper AML Compliance program in place, then you must carry out training sessions with all of your employees. Make sure they are aware of good AML practices and also play an active role in implementing them. A lot of suspect organizations and individuals will look legitimate to your system and pass security checks, setting up ‘checkpoints’ in the form of diligent employees can prevent this.

Independent Audits

Besides the inclusion of AML policies and procedures within the company, you must also be open to independent audits. These are conducted by qualified teams and can help identify any inconsistencies in the company’s financial records. Audits tend to feel invasive, but they are in everyone’s best interests. They also help make sure that your system of internal controls is working.

Open Communication

Communication is one of the requirements of AML Compliance. You must try and propagate a culture where your employees can approach the senior management and the appointed compliance officer regarding anti-money laundering.  The resulting trust and transparency will encourage the employees to take AML practices more seriously. It will also help identify any existing drawbacks in your current AML compliance program.

Use Technology

This is extremely important. AML compliance does not come cheap. There are significant costs attached to it, which is why a number of small businesses may fail to implement sound AML practices in their company. Technological solutions can help you out in this regard. These not only make it easier to follow AML guidelines, but they also reduce compliance issues. In case any discrepancies are detected, these solutions also enable you to respond quickly and resolve the situation. Let’s take a look at some of the tools you can consider using:

Global Watch Lists and Screening Solutions:

One of the most useful digital solutions for AML compliance is accessing a global watch list. This helps you access a database carrying more than 900 international watch lists. Using this can help speed up your screening process.

There are also screening solutions available that are designed to minimize the chances of false positives. You can look for an option that suits your budget. The best digital solutions providers will offer you flexible packages.

Screening Decisions and Risk Assessment Tools

Carrying out a manual risk assessment and then taking a decision can be extremely time-consuming. Fortunately, you can use software that can take a decision on your behalf. This will ensure that you remain compliant while also speed things up.

The Final Word

AML compliance is not easy, but it is not impossible either. All you really need to do is strike a balance between an organization-wide commitment and seeking aid from technology. If you’re looking for strong AML compliance tools, we suggest you contact the team at KYC2020.

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