Checklist for Anti-Money Laundering Compliance

Today, anti-money laundering compliance is vital for companies to combat financial crimes. AML regulators increase their audits and penalties year after year. Companies that fail AML compliance face severe negative effects. You can analyze your company's AML compliance processes in the "Checklist for Anti-Money Laundering Compliance" document we have prepared for you.

Checklist for Anti-Money Laundering Compliance


Anti-Money Laundering


Money laundering is the process and activities aimed at showing the values of the assets they obtained from the crime in a different way, in order to hide the crimes of the people or to bring a legal image to the crime income. Anti-Money Laundering (AML) also refers to a set of regulations and procedures implemented to prevent criminals from making illegal funds acquired. There are global and local regulators around the world to prevent financial crime. Apart from global regulators, each country has different AML policies. Companies have to comply with these AML regulations. Money laundering is a big crime, so companies have to comply with regulations, otherwise they are subject to criminal sanctions imposed by regulators. Global comprehensive AML regulations are implemented by the Financial Action Task Force (FATF). The establishment purpose of FATF is to establish international standards for the prevention of money laundering and FATF has 39 member countries. Some of the AML procedures implemented worldwide are Know Your Customers (KYC), Customer Due Diligence (CDD).


Risk-Based Approach


The Risk-Based Approach is that organizations perform AML controls according to their risk perception and the risk level of their customers. The risk perception of each company and the risk level of each customer are different. Therefore, it will be insufficient for each firm to apply the same AML controls to every customer. Therefore, there are 2 basic steps for organizations to take a Risk-Based Approach. The first is the Risk Assessment. The second is the implementation of control processes appropriate to risk levels.


Know Your Customer (KYC)


Know Your Customer (KYC) is a process in which information that can identify a customer is collected. Financial ınstitutions implement KYC procedures to reduce their risks and identify their customers, such as money laundering and financing terrorism. Know Your Customer procedures are implemented in new business relationships, untrusted customer documents, and money laundering suspicion. KYC procedures have a number of obligations. These procedures are as follows; Identification of the customer's personal information, such as name, photograph, identity, address, customer activities are examined, checking customer profiles in progress, in the absence of a customer, it must identify the useful property of the company. Also, companies have to learn about the overall purpose of business relationships.


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Checklist for Anti-Money Laundering Compliance



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