Archive for March, 2017

5 steps of AML compliance in 2017

Friday, March 3rd, 2017

Sven Stumbauer, Managing Director of AlixPartners, published an article on Five Steps for Anti-money Laundering Compliance in 2017.

According to the article, banks and other financial institutions entered 2017 facing an increasingly daunting framework of anti-money-laundering (AML) laws and regulations.

Having a comprehensive compliance programme in place is currently becoming more and more crucial. So, the following five steps financial institutions can take in 2017 have been outlined:

1. KEEP ABREAST OF CHANGES AND NAVIGATE THEM DILIGENTLY

2. KNOW YOUR CUSTOMER

3. ESTABLISH A CULTURE OF RESPONSIBILITY — FROM THE TOP DOWN

4. CONDUCT A THOROUGH RISK ASSESSMENT AND AN ACCURATE RISK QUANTIFICATION

5. IMPLEMENT A SOPHISTICATED INFORMATION TECHNOLOGY SYSTEM

It has been also mentioned that recent AML enforcement actions pinpoint the danger of failing to recognize potential risk and respond appropriately. While the evolving regulatory landscape poses significant challenges to financial institutions, opportunities might also be present. By performing comprehensive risk assessments and establishing a culture of compliance throughout the organization, a financial institution can position itself to better recognize, identify, and avoid potential risk exposure. So, by full usage of technology solutions, it can develop a better understanding of its underlying customer base and ensure it complies with AML regulations at a lower cost.