Anti-money laundering (AML) refers to the net of regulations, and procedures aimed at discovering efforts to hide criminal funds as legitimate income.
AML regulations require financial institutions to develop sophisticated customer due diligence plans to assess money laundering risks and detect suspicious transactions.
What do AML specialists do?
The AML division guarantees that clients’ and their money are kept out of risk. An anti-money laundering analyst examines and monitors financial activity and transactions that appear to be questionable. They are also responsible for helping businesses to follow all anti-money laundering rules and regulations to prevent audits or money-laundering accusations.
Elements of AML
AML consists of KYC (Know Your Customer) and CDD (Customer due diligence). Know-Your-Customer (KYC) is a compulsory procedure in the onboarding process for institutions that open and hold financial accounts. It is when all needed documentation from clients’ side has to be uploaded for opening the bank account. KYC’s significance in onboarding customers is one of the biggest challenges many businesses confront daily. Customer due diligence (CDD) is the process used by financial institutions to collect and evaluate relevant information about a customer or potential customer. CDD is a series of examinations to help institutions verify your customers’ identities and consider their risk profiles.