A Guide To Anti-Money Laundering For Your Business

Even though it has been romanticized in movies and TV shows, the reality is that money laundering is a serious problem. The process of criminals turning their ill-gotten gains into “clean” cash has ramifications for numerous parties.

It’s also something that remains prevalent – and shows no signs of disappearing any time soon. According to recent statistics, money laundering activities right now cost the globe up to 5% of its GDP.

Another problem is that money laundering can negatively impact your business, even if you have no direct influence or knowledge about it happening. This is particularly the case if you own a financial institution and a customer uses your services to process their illegal money.

Checkout 4 Prime Guide To Anti-Money Laundering For Your Business:

As money laundering can result in large fines, damaged reputations, and even spells behind bars, it’s essential you are prepared. Here’s a quick starter guide on anti-money laundering (AML) for your business.

1. Make use of software solutions

Software solutions have made companies a lot more efficient and productive. From accounting to conducting data analysis, the software takes out a lot of manual effort, removes human error from the equation, and processes that typically take hours, meaning they can be done in a matter of seconds.

The same applies when you incorporate AML compliance software solutions into your process. With specially designed software, you are able to monitor transactions, quickly screen customers, investigate suspicious cases with in-depth reports, and so on. All of this helps you to minimize the risk of money laundering in your company.

2. Educate your staff

The software provides your AML efforts with a strong foundation. However, the next layer should come from your employees. When your staff members are educated about money laundering and the signs to look out for, this better protects your company from this activity.

Regular education should be provided to not just keep up with the latest developments but to also comply with government regulations.

3. Report suspicious activity

If you identify any activity that you deem suspicious from a money laundering point of view, you must report this to authorities. When putting together your report, ensure you reference the customer and provide information about the transaction.

There are various paths you can take to report suspicious activity. This can be done through your financial institution, a regulator, or a law enforcement agency. Whichever channel you use, make sure to fill them in with all relevant details.

Understand there are many different forms of suspicious activity. Even if you’re unsure about whether a transaction is a money laundering attempt or not, it’s better to report this even as a precaution.

4. Add extra verification measures for customers

Doing your due diligence with customers will pay off in the long run. Yes, it requires extra effort on your part, but it also reduces the possibility of criminals trying to take advantage of your business.

There are numerous methods to add verification processes for ensuring customers are who they say they are. This includes checking utility bills, bank statements, or a government-issued ID like a passport.

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