In business, capital is one of your most important assets. Every company is on the hunt for ways to generate more revenue. But there are limits to how your company can acquire and use its money. If you are not careful, money laundering can become a serious problem, putting 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. You don’t want your company involved in a money-laundering scheme. But there is always a chance that someone may try to use your company for their own gain.
What is AML Compliance?
Anti-money laundering compliance practices are a proven way to reduce criminal activity on a global scale.
These practices might include anti-money laundering training courses for your staff. They could also mean implementing AML compliance software to automate and check for potential fraud. All of these are components of a strong corporate AML compliance program.
Given the pervasiveness of money laundering, as well as the effect that it can have on organized criminal activity, AML regulations are common around the world. If you want your company to be successful, it needs to comply with regulations.
Still, it can be difficult to effectively manage internal AML practices, like 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 offers you the option to streamline the anti money laundering compliance processes, while also complying with all AML regulations.
Why AML Regulations are Important
First of all, you need to follow AML regulations in order to conduct international business. But there are more reasons your company should want to implement AML practices and anti money laundering training.
Organized crime is a difficult problem to stop because organizations can generate their own money. The one way to keep them from using that money to create crime is by making the money itself illegal. Most vendors and suppliers cannot accept illegally-obtained money, since it makes them liable for crimes as well. This is where money laundering comes in.
Money laundering occurs when legally earned money with illegal money 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. So in order to protect your company from illegal money laundering operations, you need to put AML practices in place.
Global AML Regulations
Many companies find it hard to achieve global AML compliance.
So FATF (the Financial Action Task Force) is an international group that helps to promote AML practices. It has a list of 92 recommendations for preventing money laundering, and is the standard most governments and companies hold. 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. You may find some overlap here, but not always. 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.