A firm-wide risk assessment will identify and assess the risks of money laundering and terrorist financing. Auditors, insolvency practitioners, external accountants, tax advisers, independent legal professionals and trust and company sevice providers must complete an AML firm-wide money laundering risk assessment.
Businesses captured under anti-money laundering and combatting financing of terrorism laws must understand their firm’s risk exposures to financial crime.
The AML/CFT Firm-Wide Risk Assessment has the objective of informing business owners and AML/CFT compliance officers of the areas in their business that require adequate policy, procedures and controls to manage known risks.
The risk-based approach under AML/CFT laws removes a tick-box style to evaluating financial crime risks across a business. The risk-based approach recognises that businesses know their business the best and therefore are responsible for ensuring the risks are adequately evaluated in order to prevent money laundeirng.
If businesses are not using regulatory technology to assist manage, monitor and report on AML/CFT compliance, it is likely operational costs will be high.
AML/CFT compliance has many administrative requirements. Relying on human resourcing for repetitive duties will push compliance costs up.
By benefiting from regulatory technology that is designed for automated compliance risk reporting, businesses should expect compliance costs to decrease and compliance efficiency to improve.
Businesses responsible under AML/CFT laws will need to ensure their risk methodology and reporting processes can stand-up to independent scrutiny and meet the threshold of ‘adequate’.
AML360™ is specialist regulatory technology designed to assist businesses to achieve a professional structured reporting framework.
The benefits of AML36-™ regulatory technology include:
