How does AML system work?
An anti-money laundering (AML) system is adopted by entities regulated under AML laws of a country to comply with AML regulations and detect, prevent, and report any activities or transactions indicating money laundering (ML), terrorism financing (TF) and proliferation financing (PF) risks. It works by implementing policies, procedures and controls for compliance requirements such as:
- Enterprise-wide Risk Assessment
- Customer Due Diligence
- Sanctions Screening
- Suspicious Activities or Suspicious Transactions Reporting
- Transaction Monitoring
- Record-Keeping
- Employee Training
To learn more, check out our guide on establishing an effective AML framework here: