{"id":2216,"date":"2019-04-17T08:18:30","date_gmt":"2019-04-17T08:18:30","guid":{"rendered":"http:\/\/blog.kyc2020.com\/?p=2216"},"modified":"2023-07-24T12:07:55","modified_gmt":"2023-07-24T12:07:55","slug":"the-newcomers-guide-to-consulting-solutions-for-aml-compliance","status":"publish","type":"post","link":"https:\/\/www.kyc2020.com\/blog\/the-newcomers-guide-to-consulting-solutions-for-aml-compliance\/","title":{"rendered":"The Newcomer’s Guide to Consulting Solutions for AML Compliance"},"content":{"rendered":"

When I first started doing research about AML compliance, one of the first things I realized was how inaccessible good AML compliance solutions have been historically. Banks were always the primary users of programs for AML compliance and they needed the best and most comprehensive solutions possible. With entire departments dedicated solely to AML compliance and protecting their interests, banks didn’t have to worry about affordability or efficiency. The main concern with those institutions is effectiveness by any means. But where does that leave the little guy in need of an AML compliance solution, the companies that don’t have the resources or personnel to dedicate to an AML department?\u00a0 What can they do? Here I investigate one solution.<\/p>\n

The chance of becoming an unwitting conduit for a money laundering scheme is becoming greater for small and medium-sized enterprises (SMEs)<\/a> recently. Criminals are adopting more sophisticated means of circumventing the traditional defenses against money laundering. SMEs can become easy targets if they don’t keep up their guard. At the same time, regulatory requirements have gotten tighter and the consequences for failing to comply have become more harsh.<\/p>\n

Companies with in-house solutions are at increased liability when it comes to these regulations. So how can you minimize your liability and improve your AML regime? Outsourcing your AML<\/a> compliance solution is one idea. This method is cost efficient and works to mitigate company liability. But outsourcing isn’t without its risks. Sharing confidential data with a third-party can be risky, if you aren’t careful.<\/p>\n

Here are a few things to consider before your organization makes the plunge into third-party compliance solutions.<\/p>\n

Improvements in AML Policies and Infrastructure<\/strong><\/p>\n

Traditional enterprise AML compliance solutions<\/a> require a lot of investment and ongoing manpower to run effectively. These systems were not developed for SMEs and as such, and can be difficult for small companies for small companies to source the resources to run them. In-house AML compliance regimes need to be maintained. For smaller companies, this can be a huge disruption. Outsourcing your AML compliance alleviates these potential stressors by taking the onus off of the company and putting it in the hands of experienced professionals. A team that can handle:<\/p>\n