What is AML Policy?

Millions of money laundering take place around the world every year. Regulators are taking up-to-date measures to prevent this financial crime. But the actions of regulatory agencies alone are not enough to prevent this crime. There are issues that companies need to regulate in this area.

Financial institutions should regulate an internal AML policy. This policy includes the measures the company takes against money laundering. Anti-money laundering policy is a policy created by financial companies that aim to prevent revenues from illegal activities. It is mandatory to comply with these rules within the company. It is also controlled by regulatory authorities.

AML policy in businesses is regulated according to the recommendations of the country and FATF. Countries have their own regulatory bodies—for example, the BaFin in Germany, the UK FCA, and MASAK in Turkey.

How is AML Policy Prepared?

So how is AML policy prepared? The first thing to do is to determine the AML risk of the company. It is then to provide the requirements of the country in which it is located, as requested by your company. 

  • The aim of the policy is to define money laundering and terrorist financing within the company. Company employees must be aware of this topic.
  • There must be a compliance officer in the company. Responsibilities should be stated.
  • Before partnering with other companies, the company must recognize the organization and verify that it is not on any sanctions list.
  • The company must recognize its customers and confirm that it is not on any sanctions list.