An anti-money laundering (AML) compliance program helps businesses, including traditional financial institutions—as well as those entities identified in government regulations, such as money-service businesses and insurance companies—uncover suspicious activity associated with criminal acts, including money laundering.

Which Businesses need Anti - Money Laundering Compliance Program?

Banks, money transfer companies, cryptocurrency exchanges, e-wallets, payment companies, credit companies, insurance companies, gambling operators, and many other businesses are required to ensure Anti- Money Laundering Compliance Program. Companies should know compliance meaning and take measures accordingly. All these businesses’ efforts to ensure compliance with the regulations they have to comply with constitute the AML compliance program of these businesses. Companies that fail to comply with and fail obligations regarding compliance are subject to large fines. In 2019, organizations that did not meet AML compliance were fined $8 billion. These heavy penalties show that businesses should pay extra attention to compliance work and create a perfectly functioning anti-money laundering compliance program.

Although AML regulations differ from country to country, they are all the same: Preventing financial crimes. This article will explain how to create a perfect Anti-Money Laundering compliance program based on FATF recommendations, European Union regulations, and compliance meaning.

Risk-Based Approach in ANTI- MONEY LAUNDERING Compliance Program

The basis of an advanced Anti-Money Laundering compliance program is based on a risk-based approach. Organizations should determine the customer’s risk level by making a risk assessment during the customer onboarding process. Existing customers also need to be checked at regular time intervals, as existing risks can change over time. Organizations should then aim to implement an effective ANTI- MONEY LAUNDERING compliance program by creating a control program tailored to customers’ risk levels.

Tasks of the ANTI- MONEY LAUNDERING Compliance Officer in the ANTI- MONEY LAUNDERING Compliance Program

The ANTI- MONEY LAUNDERING compliance process is an ongoing process that requires careful attention. It is the firm’s ANTI- MONEY LAUNDERING compliance officer’s responsibility to ensure ANTI- MONEY LAUNDERING compliance of a firm and the implementation of the Anti-Money Laundering compliance program. For companies, the ANTI- MONEY LAUNDERING compliance officer is a very important employee. Therefore, the ANTI- MONEY LAUNDERING compliance officer must also have some qualifications and skills to enable the company to provide ANTI- MONEY LAUNDERING compliance processes.

The main task of the ANTI- MONEY LAUNDERING compliance officer is to identify risks and suspicious transactions by applying a risk-based approach and to report to the regulators to which it is responsible. In addition, according to FATF recommendations and European Union regulations, companies must ensure that the ANTI- MONEY LAUNDERING compliance officer develops by sending them to seminars and training.


Customer Onboarding & Customer Account Opening Processes

According to the risk-based approach, one of the company’s Anti-Money Laundering obligations is to determine the customer’s risk level by making a risk assessment before opening the customer account. “Customer Due Diligence” and “Know Your Customer” procedures are applied for risk assessment. In these processes, the customer’s identity is verified, and the risk assessment of the customer is controlled by scanning the customer in sanction, PEP, and Adverse Media data. With our ANTI- MONEY LAUNDERING Screening Software, businesses can control their customers with our global ANTI- MONEY LAUNDERING database.)

Detecting Suspicious Transactions

At the beginning of our article, we said that the purpose of this compliance meaning is to detect and prevent financial crimes. For a successful compliance program to achieve its purpose, the risk assessment applied during the customer onboarding process should begin to be applied after the customer account is opened. The customer’s financial transactions must be examined, and suspicious transactions must be reported. (Our ANTI- MONEY LAUNDERING Transaction Monitoring software enables automatic detection of suspicious transactions with company-specific rules and scenarios.)


Independent auditors must audit Anti-Money Laundering compliance programs to measure the ANTI- MONEY LAUNDERING compliance program’s efficiency and avoid possible regulatory penalties. With these audits, businesses can detect their deficiencies and failures and correct their problems before regulatory inspections. Thus, companies can be protected from high regulatory fines.


How Neeps Consulting Help You?

Neeps Consulting provides end-to-end solutions that will increase the efficiency of Anti-Money Laundering compliance programs of businesses. With our global coverage sanction, PEP and Adverse Media database, and advanced transaction monitoring software, you can speed up all your processes from customer onboarding to Transaction Monitoring and manage a more efficient compliance process.

You can contact us  to get information about our ANTI- MONEY LAUNDERING solutions.