What do the latest anti-money laundering regulations mean for business?

Keeping abreast of the updates to anti-money laundering (AML) laws is one of the key challenges facing organisations.

There are few regulations as important to the financial services sector as those that tackle AML.

Because the financial services industry is ever-changing, so too are the AML regulations.

This poses a significant challenge for businesses.

The recent amendments to the regulations include the addition of additional kinds of activity, like crypto asset businesses, the inclusion of new high-risk factors to be considered when assessing the need for increased due diligence, and the introduction of the requirement for firms to report on discrepancies in beneficial ownership information.

The reach of these regulations stretches from global financial organisations to startups.

How can companies stay compliant

Firms should take a holistic approach when considering the purpose of the AML regime, irrespective of their size.

Having clarity on processes that all staff can access along with clear documentation that all staff understand will certainly help.

That being said, a firm’s policies and procedures need to be in line with the nature, size, and risk profile of the business.

Along with the above, training is a required aspect of compliance. The content and delivery of this training are both important.

Having practical aspects of training makes it more effective, and at the same time, less academic.

Computerised tests and training logs ensure that you can check staff have understood their training.

Whilst compliance remains an ongoing challenge, having strong leadership and alertness to these updates will stand your company in good stead.

If you need advice on the latest anti-money laundering updates, please contact us.