Money Laundering is to ensure that the money that has been acquired illegally appears to have been obtained legitimately. In simpler terms, it is the process of turning the profit of illegal activity into a legitimate income.
Money laundering which is the process of disguising the proceeds of crime and integrating it into the legitimate financial system can also be defined as actions and activities aimed at hiding, covering or showing the nature, source, location, status, movement.
Money laundering is a crime. Therefore, companies have employees to analyze money laundering and report to the required institutions, and those employees are called Money Laundering Reporting Officer (MLRO).
The Money Laundering Reporting Officer (MLRO) plays an important role in providing anti-money laundering regulations.
As we mentioned earlier, the Money Laundering Reporting Officer (MLRO) is someone who works against the money laundering and financing of the terrorism framework in the company.
MRLO is responsible for reporting money laundering information or doubt to the relevant authorities as it should be.
MRLO is the person who decides on reporting that may affect a company’s relationship with its customer and exposure, to criminal, legal, regulatory and disciplinary action. Besides, MLRO should take sufficient responsibility to ensure that the business has access to all client files and business information to make the necessary decisions.
1- It is the responsibility of MLRO to decide whether sufficient suspicion is required to generate reports on money laundering and also to properly disclose it to the relevant authorities.
2- To observe and plan new legislation on the development of AML policies, systems, and procedures to ensure effective implementation
3- Money laundering, terrorist financing (AML / CTF) and fraud prevention are also responsible.
4- MLRO must ensure its customers know and execute Customer Due Diligence (“CDD”), CDD is an important part of Anti-Money Laundering and Terrorism Financing (“PMLFT”) requirements. Enables the person in question to know who their customers are and not to accept them except risk appetite
5-MLRO should develop and implement an in-house training program.
6- The role of the MLRO has an important responsibility and should be undertaken by an appropriately experienced person
7- MLRO should be able to evaluate the risk of money laundering, identify problems in compliance processes and analyze them
8- MLRO should be sure, AML guarantees should be sufficient, otherwise, a firm's MLRO may be subject to higher fines or worse sanctions
9- MLRO is an extremely important and risky position in a business, so senior executives must understand the role.
Request a demo and learn how Sanction Scanner protects your firm from the Financial Crimes.
Request Demo