AML - Anti Money Laundering - is the laws, regulations, and procedures designed to prevent money laundering, which is when criminals try to integrate their illegally obtained cash into the legitimate financial system.
In the US, financial institutions must have a written, board-approved AML program to ensure compliance with the Bank Secrecy Act (BSA) and US Patriot Act. To maintain a compliant position, they must have a customer identification program (CIP) in place and use a risk-based approach to identify and verify all customers to ensure they are who they say they are. This will include: screening for Sanctions and PEPs, completing enhanced due diligence where required, keeping records of those checks, monitoring for any changes, and alerting authorities of anything suspicious.
The easiest, most cost-efficient and most reliable way to comply with the BSA is to use an electronic verification platform. SmartSearch can offer a complete AML solution - initial checks, sanction and PEP screening and ongoing monitoring - all from one easy-to-use platform.