FAQ

WorldAML provides comprehensive investigation and analysis of anti-money laundering (AML) and equivalent risks world-wide. WorldAML has 2,400,000+ Profiles of Politically Exposed Persons, 1,700+ global Sanctions and Enforcement Sources and 35,000+ Global Adverse Media

This provides a unique framework for ensuring compliance with both initial and ongoing AML compliance as well as customer due diligence (CDD), know-your-customer (KYC), politically-exposed person assessment (PEP) and other requirements.

The WorldAML database includes custom-based reporting and data interface so that each client can develop custom reporting based on their requirements. The WorldAML API (application programming interface) also allows the WorldAML database to be integrated into third party websites, or the data to be ported into third-party databases. The AML API enables banks, trading firms, payment firms, legal firms and a wide range of other organisations to improve and accelerate their AML processes, becoming compliant with the highest AML standards.

WorldAML backs up its database and research capabilities with a strong team of analysts with long experience in the evolving requirements of AML, KYC and other reporting and compliance standards. This enables the rapid continual improvement and update of the AML database as well as excellent customer service.

An Application Programming Interface (API) is a set of data processing and communications protocols, standards, and tools that allows different software applications to communicate with each other. APIs define how different software components should interact, making it easier to develop applications that can work together seamlessly.

An API acts as a data messenger between two software applications and their underlying databases. It allows one application to access and use the features and functions of another application, without needing to understand the underlying code or data structures. This can be especially useful for developers who are creating complex applications that rely on multiple different software components.

APIs are often provided by software designers as a way to encourage developers to build applications that integrate with their software. By providing an API, software providers can expand the functionality of their applications and reach a wider audience, while also allowing developers to create new and innovative products and services.

Anti-Money Laundering (AML) refers to a set of laws, regulations, and procedures designed to prevent the illegal generation and use of money obtained through criminal activities such as fraud, corruption, drug trafficking, and terrorism. Money laundering is the process of concealing the proceeds of criminal activities by making them appear as if they were obtained through legitimate means. AML regulations aim to prevent criminals from using the financial system to launder money and to detect and report suspicious activity to relevant authorities.

AML regulations require financial institutions, including banks, to conduct customer due diligence (CDD) to verify the identity of their customers, assess their risk profile, and monitor their transactions for suspicious activity. Financial institutions are also required to report any suspicious activity to the relevant authorities, such as the Financial Intelligence Unit (FIU) in their jurisdiction.

The consequences of non-compliance with AML regulations can be severe for financial institutions. They may face financial penalties, reputational damage, loss of license, and criminal prosecution. AML regulations also require businesses to maintain accurate records of transactions and customer information, including identity documents.

AML regulations are constantly evolving to keep pace with the changing methods used by criminals to launder money. As a result, financial institutions must keep up with the latest AML regulations and compliance procedures to ensure they remain in compliance and protect their customers and the integrity of the financial system.

Know Your Customer (KYC) is a structured investigative process that financial institutions, including banks, use to verify the identity of their customers and assess the risks associated with them. The KYC process is designed to prevent money laundering, terrorist financing, and other illegal activities by ensuring that financial institutions know who their customers are and the source of their funds.

KYC procedures typically involve collecting information about the customer, such as their name, address, date of birth, and identification documents such as a passport or driver’s license. Financial institutions may also request additional information, such as the customer’s occupation, income, and purpose of the account.

The KYC process also involves assessing the risk associated with the customer. Financial institutions use a risk-based approach to determine the level of risk a customer poses for money laundering or terrorist financing. Customers who are considered higher risk may require more detailed due diligence, including enhanced due diligence (EDD).

KYC regulations are a legal requirement for financial institutions, and failure to comply can result in financial penalties, loss of reputation, and legal action. KYC procedures are also an important part of a financial institution’s reputation and risk management strategy.

In summary, KYC is a process used by financial institutions to verify the identity of their customers, assess their risk profile, and prevent money laundering and other illegal activities. KYC procedures are a legal requirement and an essential component of a financial institution’s risk management strategy.

Customer Due Diligence (CDD) is a process used by financial institutions to identify and verify the identity of their customers and to assess the risks associated with them. CDD is a critical element of an effective anti-money laundering (AML) compliance program, as it is designed to prevent financial institutions from being used to facilitate money laundering, terrorist financing, or other illicit activities.

CDD typically involves collecting and verifying customer information, such as name, address, date of birth, and identification documents, such as a passport or driver’s license. Financial institutions may also collect information about a customer’s occupation, source of funds, and purpose of the account.

The level of due diligence required may vary based on the customer’s risk profile, with higher-risk customers requiring more detailed and comprehensive CDD. Enhanced Due Diligence (EDD) may be necessary for customers who pose a higher risk, such as politically exposed persons (PEPs) or customers operating in high-risk industries or jurisdictions.

Financial institutions may also conduct ongoing monitoring of customer accounts and transactions to ensure that the information they have on file remains current and accurate. This monitoring can help detect and prevent suspicious activity, such as unusual transactions or patterns of activity.

The goal of CDD is to provide financial institutions with a comprehensive understanding of their customers and their associated risks, enabling them to make informed decisions about their business relationships and transactions. By implementing effective CDD processes, financial institutions can help prevent their services from being used for illicit activities, protect their customers, and maintain compliance with AML regulations.

A Politically Exposed Person (PEP) is an individual who holds a prominent public position or function, or who is closely associated with such a person. PEPs are considered higher risk for money laundering, terrorist financing, or other financial crimes due to their potential influence and access to public funds.

PEPs can include heads of state, government ministers, senior executives of government-owned entities, judges, high-ranking military officials, and senior executives of international organizations. Family members and close associates of PEPs may also be considered PEPs.

Financial institutions are required to identify and conduct enhanced due diligence on PEPs to ensure that they are not being used to facilitate money laundering, terrorist financing, or other illicit activities. Enhanced due diligence typically involves obtaining additional information about the customer, the source of their funds, and the purpose of their transactions.

PEPs may also be subject to additional reporting requirements and monitoring by financial institutions to ensure that any transactions they undertake are legitimate and do not involve the misuse of public funds.

The identification and monitoring of PEPs is an important part of an effective anti-money laundering (AML) compliance program. By identifying and monitoring PEPs, financial institutions can better understand the risks associated with their customers and take appropriate measures to prevent their services from being used for illicit activities.

Identity verification is an essential process that financial institutions, including banks, payment processors, and other regulated entities must carry out in accordance with Know-your-Customer (KYC), Customer Due Diligence (CDD), and Anti-Money Laundering (AML) regulations. The objective of identity verification is to verify the identity of the customer, assess the level of risk they pose to the institution, and ensure that their activities are legitimate.

The process of identity verification typically involves obtaining specific personal information from the customer, including their name, date of birth, address, and government-issued identification, such as a passport, driver’s license, or national identity card. This is usually verified via document validation: authentic copies of national identity documents that must be uploaded online. These documents are crucial in determining the customer’s identity and legitimacy, and they must be checked thoroughly to ensure their authenticity.

The procedures for verifying customer identity can vary depending on the institution’s policies and regulatory requirements. For example, some institutions may require customers to provide multiple forms of identification, such as a passport and a utility bill, while others may only require one form of identification.

Institutions may use various methods to verify the authenticity of the customer’s identity documents. These methods include comparing the documents to public records, government databases, and proprietary databases maintained by third-party identity verification service providers.

In addition to verifying the customer’s identity, KYC and AML requirements may also involve assessing the level of risk the customer poses to the institution. This risk assessment can involve reviewing the customer’s transaction history, source of funds, and the type of business they conduct.

Identity verification is a critical component of KYC, CDD, and AML requirements. It involves obtaining specific personal information from the customer and verifying the authenticity of government-issued identification documents. Institutions may use various methods to verify the customer’s identity, including comparing documents to public records and proprietary databases maintained by third-party identity verification service providers. Ultimately, the goal is to assess the level of risk the customer poses to the institution and ensure that their activities are legitimate.

WorldAML integrates best practise for identity verification and document checks in our WorldAML API.

Sanctions lists are directories of individuals, organizations, and countries that have been identified as being involved in activities that are prohibited by international law or considered a threat to national or international security. These lists are maintained by various institutions, including the United Nations, the Organisation for Economic Co-operation and Development (OECD), the Financial Action Task Force (FATF), the US Treasury, and other globally relevant bodies.

Sanctions lists are used extensively in Know-Your-Customer (KYC), Anti-Money Laundering (AML), and Customer Due Diligence (CDD) procedures. Financial institutions are required to screen their customers against these lists to ensure compliance with international laws and regulations.

The United Nations Security Council maintains a sanctions list of individuals and entities that have been identified as engaging in activities such as terrorism, nuclear proliferation, and arms trafficking. The FATF maintains a list of countries that are deemed to be non-cooperative in the fight against money laundering and terrorism financing. The US Treasury maintains a list of individuals and entities that have been sanctioned for activities such as drug trafficking, human rights violations, and terrorism.

When conducting KYC, AML, and CDD procedures, financial institutions are required to screen their customers against these sanctions lists to ensure that they are not doing business with individuals or entities that are on the list. If a customer is found to be on a sanctions list, the institution must report the activity to the appropriate regulatory body and take appropriate action, such as freezing assets or terminating the customer relationship.

The use of sanctions lists is a crucial component of the global effort to combat money laundering and terrorist financing. By screening customers against these lists, financial institutions can help prevent the flow of funds to individuals and entities engaged in illegal activities, and protect themselves from the legal and reputational risks associated with non-compliance with international regulations.

WorldAML integrates all globally-relevant sanctions lists in our WorldAML database and API. You will be able to automatically check whether any of your customers or suppliers are on international sanctions lists.

Counter-terrorism financing (CTF) is a set of measures designed to prevent the use of financial systems and services for the purpose of funding terrorist activities. National and international authorities have established frameworks and regulations to screen for financing of terrorism, with the aim of disrupting and preventing terrorist acts.

The main institutions involved in CTF include government agencies, financial institutions, and international bodies such as the United Nations, the Financial Action Task Force (FATF), and the Egmont Group of Financial Intelligence Units.

Banks, payment institutions, forex companies, and online trading companies are required to screen their customers for terrorist financing. This involves implementing Know-Your-Customer (KYC), Anti-Money Laundering (AML), and Customer Due Diligence (CDD) procedures to identify and verify the identities of their customers, assess the risks they pose, and monitor their transactions for suspicious activity.

National and international authorities screen for terrorist financing by monitoring financial transactions and sharing intelligence through systems such as the Egmont Secure Web. This allows for the exchange of information between CFT financial intelligence units across different countries, which can help to identify suspicious patterns of activity and disrupt the financing of terrorism.

To comply with CTF regulations, financial institutions must remain vigilant and keep up-to-date with evolving threats and techniques used by terrorists to fund their activities. Failure to comply with these regulations can result in severe legal and reputational consequences for institutions and individuals involved.

Institutions must also establish and implement risk-based policies, procedures, and controls to prevent their services from being used for terrorist financing. This includes reporting suspicious transactions to the relevant authorities and freezing assets of individuals and entities identified as being involved in terrorist activities.

CTF screening and due diligence is a critical component of global efforts to combat terrorism. KYC, AML, and CDD procedures are essential to identifying and preventing terrorist financing, and institutions must implement risk-based policies and procedures to comply with these regulations.

WorldAML integrates all available sources of Counter-Terrorism Financing (CFT) into our WorldAML database and API. You will be able to automatically check whether any of your customers or suppliers are on international CFT lists.