Millions of money laundering cases occur around the world each year. Both governments and companies need to take up-to-date measures to prevent money laundering crime, which is starting to spread. Each country has a different regulator. Although regulators try to comply with FATF recommendations, each regulator has different regulations and controls. Regulators require that all financial institutions strictly comply with their anti-money laundering policies. However, the actions of regulatory agencies alone are not enough to prevent this crime.
Companies have issues and responsibilities that need to be regulated in this regard. For example, bank institutions, which were previously stricter in sharing individual information with the government, can now transfer data to the authorities in case of risk when necessary.
Financial institutions should regulate an internal AML policy. This policy includes the measures the company takes against money laundering. Anti-money laundering policy is created by financial companies that aim to prevent revenues from illegal activities. It is mandatory to comply with these rules within the company. Regulatory authorities also control it.
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 country's requirements in which it is located, as requested by your company.
- The policy aims to define money laundering and terrorist financing within the company. Therefore, 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.
- Complete records of customers' movements should be kept; any suspicious information should be reported to the government, and permission should be sought for further investigation. At the same time, they should prepare a suspicious activity report regarding suspicious transactions and submit it to the regulatory authority.
With solutions such as AML Name Screening, Transaction Monitoring, and Dynamic Customer Risk Assessment, you can act to prevent black money, financing of terrorism, and financial crimes. It allows you to track customers, notify regulators in suspicious cases, and reduce your workload by almost half by preparing reports on your behalf.