AML CTF Compliance

Anti-Money Laundering (AML) / Counter-Terrorism Financing (CTF) Compliance

What is Anti Money Laundering Compliance?

Anti-Money Laundering (AML) Compliance is a process that consists of the laws, regulations, and policies for identifying and preventing financial crimes. The clients are protected against any sanctions, PEPs (Politically Exposed People) lists, and global watch lists.

What is the Counter-Terrorism Financing (CTF) Compliance?

Terrorism financing is the collection and misuse of resources for terrorism act purposes which causes destructive and harmful consequences for countries. Counter-Terrorism Financing (CTF) aims to prevent the funding for the terrorism acts. The regulatory authorities, banks and financial institutions can help to prevent terrorism funding, which is a financial crime. In other words, Counter-Terrorism Financing (CTF) aims to put an end to terrorism and all illegal financial crimes related to it.

In order to combat the terrorism financing, the financial institutions take measures such as enhanced due diligence for the customers in high-risk score so that they comply with AML/CTF regulations to prevent any financial crime.

What is International Anti-Money Laundering AML Compliance?

 International Anti- Money Laundering AML Compliance means being in line with the regulations, laws, and policies implemented at the international level to identify and prevent international financial crimes. For a better explanation, illegal drug trafficking, arms trafficking, and human trafficking can be used as examples of the global financial crimes. Primarily, the financial crime cases should be conducted by national measures, but when the results are insufficient, and the cases should have been brought into the international agenda. The aim is to prevent, to combat laundering money caused by internationally organized financial crimes.

Why is Anti Money Laundering Necessary?

Anti-Money Laundering (AML) Compliance is necessary because, in banks and other financial institutions, it is the most crucial source of risk prevention. First of all, Anti Money Laundering (AML) Compliance prevents fraud schemes which are increased with the rise of e-commerce and online payments. In the absence of AML compliance, banks and other financial institutions are charged with immense penalties due to misconduct or lack of control. Furthermore, in the absence of AML Compliance, the loss will be much more significant to banks and the other financial institutions besides monetary terms and credit rating; reputational loss and the termination of the business permanently or temporarily may be listed as further consequences.

On the other hand, The Anti Money Laundering (AML) Compliance allows the customers to trust the banks and the other financial institutions as they are taking required measures to protect financial eco system and society, that they feel more secure with the banks which are compliant with the Anti-Money Laundering (AML).

What is Anti Money Laundering (AML) Act?

The Anti-Money Laundering (AML) Act aims to protect the monetary system from the abuses of financial crimes. Numerous acts are established with this aim, but one of the most important acts is the “Bank Secrecy Act” established in 1970 in USA. Other acts are the amended versions of the Bank Secrecy Act. It ensures that the laws are enforced and conducted within the regulations of Anti-Money Laundering (AML) compliance.