All financial institutions in the US must have AML compliance policies and procedures in place to minimize their money laundering risk and ensure they are complying with the BSA. A company’s AML compliance program must include methods to effectively monitor and manage AML policies and procedures by taking a risk-based approach.
The guidance on how regulated firms need to do this is open to a company’s interpretation. Companies need to prove their processes are fit for purpose and that they have taken a risk-based approach. Therefore, the firms themselves need to decide where they need to focus their activities based on where the AML threat is the greatest.
The easiest way to ensure all AML requirements are being met is to use a full-service CIP/AML solution that identifies and verifies customers, screens them for sanctions, PEPs, SIPs, and RCAs and automatically performs enhanced due diligence on any matches. A good AML solution will also offer ongoing monitoring and alerts.
SmartSearch can offer a complete AML solution - initial checks, sanction and PEP screening and ongoing monitoring - all from one easy-to-use platform.