What is Money Laundering?

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. Over the last few decades money laundering has become an increasingly prevalent issue around the globe. Financial institutions and governments are constantly looking for ways to stem the flow or illicit money entering the global economic system. That is why an international Financial Action Tasks Force (FATF) have drawn up AML regulations around the world.

What is Anti Money Laundering (AML)?

In simple terms AML or Anti Money Laundering refers to all policies and pieces of legislation that require compliant industries to identify, screen and monitor their clients to prevent money laundering. All suspicious activity must be reported to the relevant supervisory body by the money laundering reporting officer (MLRO) as a suspicious transaction report (STR).

Origins of AML regulations

Many of the laws introduced in most governments across the globe originated from the Financial Action Task Force in which 37 countries are involved. The FATF is growing in stature and rapidly becoming a force to be reckoned with in the AML sphere. It has set the standard for the world to follow and put a robust framework in place that systematically identifies countries with poor AML legislation. This name and shame approach has effectively forced reputable countries to alter their laws and start enforcing AML standards across the board.

Do you already comply with the AML?