A monetary penalty imposed on financial institutions or related entities for failing to comply with Anti-Money Laundering (AML) regulations. These fines are levied by regulatory authorities to enforce compliance and deter violations of AML laws, which may include inadequate customer due diligence, failure to report suspicious activities, or insufficient internal controls and monitoring systems.

An AML investigation is a process conducted by financial institutions to track down cases of suspected illicit activities like money laundering and terrorist financing. It involves analysing any information that might help identify suspicious patterns and potential sources of illicit funds: financial transactions, customer behavior, and other relevant data.

If the investigation concludes that the activity is suspicious, the institution submits Suspicious Activity Reports (SARs)/Suspicious Transaction Reports (STRs) or other required reports to regulatory authorities.

AML risk scoring is a model financial and other institutions use to assess the level of money laundering risk associated with a particular customer. Companies can identify high-risk customers and take appropriate measures to prevent fraudulent activities by assessing the different factors.

AML risk scoring is a model financial and other institutions use to assess the level of money laundering risk associated with a particular customer. Companies can identify high-risk customers and take appropriate measures to prevent fraudulent activities by assessing the different factors.

The AML rules aim to help detect and report suspicious activity, including predicate offences to money laundering and terrorist financing, such as securities fraud and market manipulation. These rules define the thresholds, patterns, and behaviors that may indicate suspicious activity, such as unusual transaction sizes, frequency, or patterns inconsistent with a customer’s profile.

AML rules are integral to automated monitoring systems, enabling continuous and efficient scrutiny of financial transactions and customer behavior to ensure compliance with AML/CFT regulations and mitigate financial crime risks.

AML training equips employees with the knowledge and skills to identify and respond to potential money laundering activities. It ensures compliance with legal and regulatory requirements, protects the institution’s reputation, and helps mitigate financial risks.

The goal is to ensure that staff are well-informed about AML/CFT regulations and best practices, thereby enhancing the organization’s overall compliance and effectiveness in combating financial crimes.

Transaction monitoring refers to overseeing the swift transaction capabilities customers expect, like the ability to transfer, deposit, and withdraw money, to ensure their protection. The process involves compiling and analyzing historical and current customer data, allowing organizations to identify suspicious behavior that could indicate money laundering or financial crime. 

Anti-financial crime encompasses a wide range of illicit activities, including money laundering, terrorism financing, sanctions violations, fraud, corruption, tax evasion, and other forms of financial wrongdoing.

AML is a set of laws, regulations and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. AML efforts aim to detect, prevent, and report activities related to money laundering and terrorist financing. Financial institutions and other regulated entities are required to implement AML programs, which typically include customer due diligence, sanction screening,  transaction monitoring and reporting suspicious activities to the authorities.

The AMLD is a set of regulatory requirements issued by the European Union (EU) that contains rules to combat money laundering and terrorist financing by European Union member states. Every country issues its AML laws, often based closely on FATF Recommendations.