A report by financial services compliance firm fscom has highlighted the importance of formalizing Anti-Money Laundering (AML) processes for financial institutions to remain compliant and effectively combat money laundering attempts. The Fincrime Compliance Report 2023 is based on audits of the AML frameworks of 60 financial services firms and examines the challenges they face in areas such as Sanctions, Politically Exposed Persons (PEPs), Suspicious Activity Reporting (SARs), and Customer Risk Assessments.
The report identified the top five AML risk areas for the year leading up to June 2023 as Compliance Monitoring, Customer Risk Assessments, Transaction Monitoring, Customer Due Diligence, and Enhanced Due Diligence. While the audits indicated increased vigilance and understanding of the regulatory environment, particularly in response to enhanced screening processes following Russia’s invasion of Ukraine, the report concluded that many AML frameworks still do not provide an adequate level of assurance.
The report highlighted concerns related to insufficient AML training, a lack of evidence of high-risk client sign-off by senior managers, allowing customers to make transactions before applying enhanced due diligence measures, insufficient transaction monitoring rules, and inadequate investigation of screening hits.
Additionally, the report emphasized the need for robust customer risk assessments, particularly in dealing with customers or transactions associated with high-risk third countries (HR3Cs). Existing regulations require firms to apply enhanced measures to business relationships or transactions with individuals or entities in high-risk third countries.
The AML audit reviewed financial compliance processes of various institutions, including Electronic Money Institutions, Authorised Payment Institutions, Virtual Currency Exchanges, and Bureau de Changes, covering the period from July 2022 to June 2023. The report provides best practice recommendations to address compliance issues and navigate the evolving financial services landscape.
It’s crucial for financial institutions to continually strengthen their AML frameworks and processes to meet regulatory requirements and effectively combat financial crime and money laundering
To download report, click here.
By FCCT Editorial Team freeslots dinogame telegram营销
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