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Abstract
Since the signing of the U.S. Patriot Act into Law in
September 2001, anti money laundering (AML) compliance
has become increasingly difficult to ignore for financial
service institutions, and specifically for broker-dealers.
As the intensity of scrutiny is only likely to increase
over time, it is imperative that broker-dealers start
planning for AML compliance with both short and long-term
implications in mind. Good AML compliance is insurance
worth having. Consequently, a proactive approach to
AML compliance coupled with a willingness to invest
for the long term will help broker-dealers deal effectively
with new regulations and regulatory agencies.
As a first step, every broker-dealer must undertake
a thorough assessment of where they stand today with
respect to AML compliance along four key dimensions:
knowledge, organization, technology and operations.
A scorecard that evaluates the maturity of an organization
along these dimensions will help identify gaps and points
of weakness in both processes and technology infrastructure.
With such an assessment in hand, broker-dealers will
be better prepared to pick the right solution for AML
compliance.
Since the range of AML technology solutions vary from
simple filtering to the more sophisticated “intelligent”
solutions, investing the time in understanding the trade-offs
beyond the basics of cost of implementation is worthwhile.
AML compliance is surely one area where broker-dealers
around the world cannot afford to let their guard down.
Author
Ramesh Subramanian
To know more about Wipro in finance, go to www.wipro.com/finance
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