Nevertheless, AML compliance should not be pervasively viewed as a “check-the-box” exercise to keep auditors and regulators satisfied, this should be primarily viewed as part of a business culture that brings values to the entire organization. Instilling this culture plays an important role in helping your establishment hit revenue targets by preventing crippling fines or lingering reputation risk with regulators and the public.
Though businesses perform AML compliance, they stick to following minimum AML regulations. Going the extra mile to fulfill the anti-monitoring obligations is what leads to effective AML compliance.
Difference Between AML Compliance and Efficient AML Compliance
|Efficient AML Compliance
|· Policies, controls, and procedures of the company must be obliged with the AML regulations. Following the minimum requirements.
|· Going one step ahead and introducing rigid in-house security protocols in policies.
|· Keeping manual records of customers’ data.
|· Maintaining an online updated record of customers by performing online verification on them.
|· Performing minimum verification on customers at a domestic level.
|· Performing real-time verifications on customers and screening their data against global watchlist, sanctions list, and PEPs lists.
|· Reporting the transactions only that are above the set threshold.
|· Reporting suspicious and unusual transactions of the customer as well. Or performing EDD to customers before reporting the transactions.
|· Training employees for the sake of doing it or not training them at all.
|· Organizing regular training sessions. Also introducing accountability at all hierarchy levels.
|· Performing manual AML screening on the customers
|· Performing real-time AML screening on the customers.
(Source: Shufti Pro)
Regulatory obligation and the desire to operate in a fraud-free environment or non-compliance penalties make anti-money laundering inevitable. Therefore, it is a futuristic investment that offers long-term benefits.