Money laundering has become one of the common issues for the past few years. As per the United Nations office on drugs and Crime, the predicted amount of money laundered internationally in a single year is about $800 billion which amounts to two percent to five percent of global GDP. Both organizations and corporate agencies are certainly finding new ways to fight against fraudsters or money launderers. Regulations have also developed anti-money laundering policies to enhance their efforts in this encounter.
What is money laundering?
It is the illegitimate technique of concealing the origins of money gained through criminal operations by going through a complicated strategy of financial transfers or business payments. The main objective scheme of this procedure returns the “white” money to the launder in an obscure or implicit way. These techniques are rising with the advancement of technology.
What is AML?
There are international and local regulatory bodies developed to overlook the monetary crimes in their regions and create regulations to reduce them from happening or capture the ones who indulge in these activities. Every business needs to comply with anti-money laundering guidelines forced on them. For that, they are acquired to initiate consistent divisions that bring in the anti-money laundering compliance, and performing against anti-money laundering screening is one of the essential parts of hostile to tax evasion made by the law authorization offices.
What is anti-money laundering screening?
Anti-money laundering screening is one of the strategies utilized for risk assessment of existing business or forthcoming customers’ anti-money laundering guidelines. With Shufti Pro anti-money laundering screening, organizations make sure that their present or possible clients are under anti-money laundering guidelines.
The main reason for anti-money laundering screening
Anti-money laundering screening is done to comply with three main reasons
- Make risk assessment
- Avoid blasphemous sanctions
- Safeguarding from regulations penalties
Individuals have their personal information in sanctions or any other politically exposed people are high-risk clients profiles for organizations. Politically exposed people have higher chances for monetary crimes including tax evasion and intimidation than others. In this manner, financial organizations are required to play out the screening of every customer, so they can perceive high-hazard clients and prevent them from working with them.
When to perform anti-money laundering screening?
There are different instances where businesses are obtained to perform AML screening of their customers
- Business need to perform against anti-money laundering during the onboarding cycle
- As threat levels of clients change over time. Industries should habitually monitor the risk level of their clients with screening.
- Businesses must perform AML screening in their employment processes as well.
- Organizations are also done to conduct AML screening of the UBOs of any industry they are doing business with.
How anti-money laundering screening is done?
At that point with the help of any anti-money laundering screening solutions, similar to Shufti Pro, the initials of the people are screened against all PEPs and sanctions records, to ensure that they are not recorded in any of them.
How to make anti-money laundering screening procedures efficient?
With the development of technology, the conventional techniques of overlooking are a waste of time and assets for the business. Technologically progressed solutions out there, for example, Shufti Pro, progressed with innovative automation, making anti-money laundering screening methods quicker and easier for businesses. With openness to global guideline information bases like approval records and politically uncovered individuals.
With accessibility to international regulation databases like sanction lists and politically exposed people. These solutions raise the reliability of authentication procedures. Hence these mechanisms not only provide an exhaustive risk control for your industries but allow you to comply with anti-money laundering obligatory efficiently.
Key Takeaways
AML is responsible for each industry and employee of a country. Stringent regulations requirements came into action as a result of the negative effects of money laundering on the global economy. Criminals that are violating the validity of monetary institutions should be done by all means. This very initial step is the inspection of businesses against anti-money laundering policies and procedures. The corporate agency can impose hefty criminal and domestic penalties as a consequence of violations of regulations obligatory.