Organisations all over the world are constantly striving to protect their business against financial crimes. In this journey, they are aided by regulators through the recommendations and regulations that help in the process. Regulators also enable them to detect the financial crimes beforehand so as to prevent them from taking place by employing the new measures that accompany fresh regulations.
In order to keep your business safe from fines and other financial dilemmas, your company’s Anti-Money Laundering compliance needs to be strengthened, as this prevents loss of reputation as well. Here are five ways in which you can strengthen your company’s AML compliance:
1. Knowing your customer is the first and most important step in the process of AMP control
Make sure that the information entered by your customers is accurate and complete. Once the information of the customer is revealed to be correct, their risk level can be determined using the Customer Due Diligence procedures, which is what makes the AML control process quicker and more efficient. In case a high risk is detected during the Customer Due Diligence procedure, an Enhanced Due Diligence procedure must take place. Therefore, threats and risks can be detected early on, making the AML system more efficient.
2. Following the risk-based approach was made mandatory by the Financial Action Task Force in 2012
As per this change, customers need to be controlled by businesses based on their risk levels. This way, false positives can be avoided and a lot of time can be saved, thereby strengthening AML compliance.
3. Customer monitoring needs to take place periodically so that risks and threats can be avoided
In case a customer’s information changes, their risk level changes accordingly, and if it isn’t monitored on time, the risk-based approach loses its meaning. Therefore, sanctions and PEP scans must take place between one to three months so that customers’ AML compatibility isn’t harmed.
4. Suspicious transactions, suspicious account openings, and other financial crimes are detected through AML checks
Even the suspicious account openings can be detected during the customer onboarding process. The organisation can do so by scanning the customer who is opening the account along with the buyer and the sender involved in the sanctions and PEP lists.
5. AML compliance can also be strengthened through technology. Anti-money laundering controls can be performed in today’s time without harming a customer’s transactions
Sanction Scanner enables companies to conduct AML checks in over 200 countries within just a few seconds and also provides sanction and PEP screening service in real-time data so that sanction and PEP scans can be performed safely.
Contact us to learn how ComplyRadar utilises a graph database, providing you with the power of true analytics to inspect and act on suspicious transactions in real-time.