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Risk Based Approach for 'Cost Efficient & Compliance Effective' Anti Money Laundering Program

Posted by: Christine Donahue | September 02, 2013

Anti-money laundering (AML)/ Know Your Customer (KYC) regulatory requirements have dominated the Financial Services industry for quite a while now. However, with the growing links between money laundering and terrorist financing, crime & corruption, there has been a renewed regulatory focus on AML globally. More recently, there have been multi-million dollar fines and penalties levied on financial institutions including ‘cease and desist orders’ and even the closure of businesses in some cases. An analysis of these cases shows that the AML programs were deficient and therefore not in compliance with regulations. The key areas of focus/ deficiencies noted from the regulatory actions are summarized below: