Bates Group Compliance’s Post

🚨 Two Ways a Risk Assessment Can Benefit Your AML/CFT Program 🚨 Sharing our new article written by Brandi Reynolds, CAMS-Audit, CCAS, which discusses the importance of AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) risk assessments in light of FinCEN's proposed rule to strengthen and modernize AML/CFT programs. Key Points: Risk assessments are becoming mandatory for effective AML/CFT programs. >Guides frequency and scope of independent testing. >Informs staff and technology resource allocation. >Requires integration of government AML/CFT priorities. >May lead to increased enforcement actions. 📰 Don't miss out! Read the full article to make sure your AML/CFT program is up to date and compliant: https://hubs.li/Q02Kypm00

Another reminder from MAS on AML/CFT expectations https://lnkd.in/gqak95vD This MAS information paper on AML/CFT supervisory expectations reinforces fundamental principles around customer risk assessment, red-flag identification, source of wealth (SOW) verification, and holistic monitoring. This guidance underscores the importance of balancing prevention and detection in AML/CFT frameworks: Prevention: Strengthening onboarding controls and understanding customer profiles from the start is essential. From rigorous customer risk assessment to SOW verification, MAS emphasizes preventive practices that help identify high risk customers early, protecting institutions from potential exposure. Detection: Effective AML/CFT frameworks must go beyond prevention. Enhanced red flag identification, combined with holistic monitoring across business units, strengthens the detection of suspicious activities within existing customer relationships, enabling faster and more accurate responses to potential risks. Moreover, as financial crime tactics evolve, existing practices need to be continually revisited to address new risk typologies. For instance, customers with multiple nationalities, the heightened scrutiny of PEPs, and the integration of RegTech highlight the need for a risk-based, proactive approach to AML/CFT compliance. My take as IA: when things get complex, it helps to go back to basics: stay curious, ask why, and challenge assumptions.

The AML/CTF Act imposes obligations on financial service and credit providers that provide designated services and are geographically linked to Australia (Reporting Entities). These Reporting Entities are required to establish a written AML/CTF Program that addresses potential risks related to money laundering (ML) and terrorism financing (TF). All Reporting Entities must implement one of three types of AML/CTF Program: - Standard AML/CTF Program; - Joint AML/CTF Program; or - Special AML/CTF Program. Read more about the obligations and make sure you know which type your business needs to implement. #financialservices #aml #compliance #austrac #antimoneylaundering

De-risking in AML/CFT: Navigating Compliance Challenges Hello 👋! Let me begin by tendering my apology for not sharing AML/CFT Insights over the last two weeks. Kindly note that going forward, will share the AML/CFT Insights series every fortnight as opposed to weekly. Well, this week I am back with another subject “ DERISKING”. De-risking refers to the practice where financial institutions terminate or limit business relationships with clients perceived to be high-risk, often to avoid the complexities and costs of complying with Anti-Money Laundering/ Countering the Financing of Terrorism and Proliferation (AML/CFTP) regulations. Happy Reading 📖

Some major changes to AML/CFT framework are coming.

Designing adequate risk identification and assessment mechanisms, screening and training programs, record-keeping resources and governance tools for a Comprehensive Anti-Money Laundering (AML) and Countering Financing Terrorism (CFT) Policy can be a challenging task for Designated Non-Financial Businesses and Professions (DNFBPs) and Virtual Asset Service Providers (VASPs).  Our latest guide explores the essential elements of a reliable AML/CFT Policy and brings out the best practices that DNFBPs and VASPs can adopt to upgrade their AML/CFT Policy to the highest industry standards. Download the Guide Now to improve your AML compliance. Read more here: https://lnkd.in/dzvMsnGd #AML #AMLCompliance #AMLCFT #AntiMoneyLaundering #AMLPolicy #RecordKeeping #AMLTraining #AMLScreening #AMLRiskAssessment #DNFBPs #VASPs

Ever found yourself unsure about where to turn for the right advice? Even in AML/CFT compliance, there are moments when you need a second opinion—unique situations where, despite your skills and qualifications, you just want that extra reassurance. That’s where AML FAQs steps in—your trusted companion in tackling money laundering and terrorism financing. Ask your questions, get insights from industry experts, and confidently make informed decisions. Let’s make the world a safer place to live and do business together! Register now at amlfaqs.com and be part of the community. #AML #AMLCFT #AMLCompliance #Compliance #AntiMoneyLaundering #AMLFAQs #Risk #CFT #AntiFinancialCrime #FinancialCrimeCompliance #FCC #MoneyLaundering #FinancialCrime #FinancialCrimes

The Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Policy is the cornerstone of the AML framework, establishing the processes, controls, and measures that businesses adopt to combat financial risk.  The AML/CFT Policy guides the overall AML/CFT compliance effort and helps draft procedures to determine who does what. The policy also guides the timing of various compliance activities like Screening, Know Your Customer (KYC), and Risk Assessment. The AML/CFT policy brings uniformity in undertaking compliance measures and helps adhere to the legal obligations. Watch the video to achieve excellence in AML/CFT policy implementation.  Video Link: https://lnkd.in/dyZMMS-F #AML #AntiMoneyLaundering #AMLCompliance #AMLCFT #AMLPolicy #KYC #RiskAssessment

On the Horizon: Critical AML/CFT policy updates coming. On June 28, 2024, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a Notice of Proposed Rulemaking (NPRM) that proposes amendments to anti-money laundering/countering the financing of terrorism (AML/CFT) program requirements for all financial institutions subject to the Bank Secrecy Act (BSA) with AML/CFT program obligations. The proposed changes to AML/CFT programs include the following: • The Policy should state purpose of AML/CFT Programs • The Risk Assessment process should be incorporated into the Policy. • Independent testing to be conducted by qualified party; and for an AML/CFT program to be effective, reasonably designed, and risk based, the compliance officer must be qualified. • Section 6101 of the AML Act requires that the review of the AML/CFT Priorities and the incorporation of those priorities, as appropriate, into its risk-based AML/CFT program, be included as a measure on which a financial institution is supervised and examined; therefore, these priorities should be explicitly addressed in the risk assessment as well as a policy provision assuming responsibility and obligation to comply with Section 6101.

The regulated entities in India are required to carry out Enterprise-Wide Risk Assessment and document AML/CFT policies and procedures. An AML/CFT policy helps regulated entities follow the Prevention of Money Laundering Act, 2002 requirements, and carry out day-to-day compliance activities. This video provides insights into the elements to be covered in the AML/CFT policy and the importance of the AML policy for a regulated entity. 🌏 https://lnkd.in/dKMgeq3v #AMLIndia #AMLCFT #AMLpolicies #EWRA #PMLA #customerduediligence #businessrelationship #AMLGovernance #MLFT #IFSC #AMLprogram