Money laundering is still a critical industry that many businesses face, so it is vital that they have a robust anti-money laundering, otherwise known as AML, protocols in place. In addition to this, it is crucial that AML requirements are regularly reviewed to ensure that full compliance is in place across the business. Here are some of the key factors that need to be considered for AML review requirements.
Requirements from the FCA
Under the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 from the FCA, all firms registered with the FCA must have AML regulations in place within their company structure. In addition to this, it is the responsibility of the firm themselves to monitor and manage AML policies and procedures, with them being appropriate to the size of the firm and the nature of its operations.
All firms need to make sure that responsibility for AML systems is under the control of a director or senior manager, who will work to ensure that money-laundering risks to the business are mitigated. Firms must then commit to monitoring and reviewing these procedures, and ensuring that employees understand and comply with what is set out in them.
Though responsibility might fall to just one person within the company structure, it is still vital that all members of staff fully understand the AML requirements and when they should be enforced. Therefore, it is vital that staff receives adequate training.
This can be supplied by the AML officer within the organisation, or from an external consultant, but must take place at least once every two years. Depending on the nature of your organisation, it might be prudent to undertake training more regularly, or whenever there is a major change to either the AML review requirements of the company or wider regulations. Make sure a detailed record is kept of the employees who have undergone this training, when they received it, and what they learned.
It might also be a good idea to conduct a full audit of the company to ensure that it is engaged with the right AML procedures across all infrastructure. Again, this can be conducted either by the AML officer or an external expert, and should examine all aspects of the business.
These full audits should be conducted at least once a year to ensure that all AML procedures are effective. In addition to this, individual AML risk assessments should be undertaken whenever relevant to ensure that new projects are not going to be a threat to the business as a whole.
Maintaining compliance across these areas, and ensuring that the relevant checks and reviews is a must for any business. Anti-money laundering checks need to be vigilant, to ensure that no illicit activity passes the attention of the firm. It is vital that anyone undertaking such a review is hyper-vigilant to ensure that everything is covered and addressed.
Neopay can act as that independent consultant for AML review requirements. Work with us, and our experts will deliver a full and thorough audit when relevant, in addition to further guidance to ensure that compliance standards across your full business are always to the highest level.