Your Company Needs AML Practices
October 21, 2020
In business, one of the most important assets that you have is capital. Every company looks for ways of generating more revenue, but there are limits to how your company can acquire and use its money. If you are not careful, money laundering could become a serious problem that puts the future of your company on the line.
This is especially true in international business operations where money laundering becomes more difficult to predict and track. Although you don’t want to be involved in a money-laundering scheme, there is a real chance that someone will use your company for their own, nefarious ends.
What is AML Compliance?
Anti-money laundering compliance practices have proven effective at reducing criminal activity on a global scale. This includes anti-money laundering training for your staff and implementing AML compliance software to automate and check for potential fraud. These are all components of a strong corporate AML compliance program.
AML regulations are common around the world given the pervasiveness of money laundering and the impact that it can have on organized criminal activity. If you want your company to be successful, it needs to stay in compliance with regulations. It can be difficult to effectively manage internal AML practices, including creating the documentation to prove that your company is compliant.
Your company needs an anti money laundering compliance program that can facilitate AML practices on any scale making it easy to coordinate AML processes anywhere and anytime. SILO Compliance is one of your best options for streamlining anti money laundering compliance processes and complying with national and international AML regulations.
Why AML Regulations are Important
Besides the fact that AML regulations must be followed to conduct international business, there are reasons why your company should want to implement AML practices and anti money laundering training.
Organized crime is a difficult problem to address since organizations can generate a lot of money to support themselves. The one thing that can stop them from using that money to create problems is that the money is illegal. Most vendors and suppliers cannot accept money that is obtained illegally since it makes them liable for crimes as well. This is why organized crime turns to money laundering to address the problem.
Money laundering is a process of using money in a way that mixes it with legally earned money and exchanging it so that the organization has access to the same amount in legal funds. When the organization goes to spend that money, there will not be a problem. This is how organized crime syndicates and terrorist organizations support their operations. By putting AML practices in place, you can protect your company from being used to launder money for illegal operations.
Global AML Regulations
Global AML compliance is where many companies face problems. FATF, the Financial Action Task Force is an international group that leads to the development of AML practices. It has a list of 92 recommendations for preventing money laundering and is the standard that most governments and companies stand by. Your company should comply with all 92 points on the list, but managing that can be difficult.
There are also national regulations to deal with. While there may be some overlap, it is not guaranteed. Put a system in place to monitor both national and international regulations that you need to comply with. That way, you can use a single comprehensive system to avoid problems.
Anti-money laundering software, like SILO Compliance, is the go-to option for most companies looking for a way to manage compliance across a multinational network. See why SILO Compliance’s software may be the best option for your company. We also offer AML training.