An Anti-Money Laundering check or AML check is something all businesses at risk of money laundering must complete on all customers before they enter into a business relationship with them. Rules vary across the world in terms of which businesses must complete checks, but in the US, UK and Europe, all businesses working in financial services must complete AML checks on customers - this includes banks, buildings societies and other financial institutions. Those working in other at-risk sectors including legal, property, investment and finance – must also run AML checks on their clients.
Why you should do a smartsearch not an anti-money laundering check
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Leading anti-money laundering specialist SmartSearch has warned many businesses may be at risk of being in breach of GDPR rules, due to a lack of secure data hosting.
Under anti-money laundering law, all regulated businesses in the UK - which includes financial institutions and those working in other at-risk sectors including legal, property and investment – and all financial institutions in the US, must complete due diligence on all new customers before they embark on a business relationship.
This is a hugely important part of the customer onboarding process; firstly, it is a legal requirement and businesses that do not complete the proper checks can get fined, suspended or even face legal action, and secondly, money laundering is not only a crime in itself, but an enabler for more serious crime, including terrorism, drug and people trafficking and modern slavery.