It may be the case that you’ve just found that you need to comply with anti-money laundering laws (AML). If this is your first venture into this area, it may sound like a complete minefield - what do you check? How do you check it? What do you need to verify? The list of questions can go on.
What is money laundering?
In simple terms it’s the process of criminals disguise and conceal the proceeds from crime. In the UK it’s defined as part of the Proceeds of Crime Act 2002. This includes smuggling, fraud, bribery, tax evasion and illegal arms sales.
As part of this law, it’s typical that organisations keep thorough records of financial transactions in their clients’ accounts. If anything suspicious is noticed, they are required to report it to the government.
Why are anti-money laundering regulations important?
The anti-money laundering (AML) regulations are designed to identify and prevent the laundering of money through illegal means. Businesses need to carry out certain checks on their customers (known as KYC checks) to ensure money isn’t being laundered.
This can include checking ID, address, date of birth and other details, to try and identify those who may be laundering money. Regular monitoring should also take place to detect changes which may indicate an involvement with illegal activities (e.g. unusual large transfers).
Where do I begin?
Having a robust AML policy in place is a must. It’s part of the regulations and outlines how your organisation operates in regards to anti-money laundering.
Tools like ML Verify can also help speed up the process of ensuring staff are well trained, policies are in place, and checks are carried out efficiently and quickly