Banking

Banking is at the forefront of the global campaign against money-laundering, tax evasion, terrorist financing and other problem area. Every bank operating today requires a strong compliance function which extends to both corporate and individual customers.

Banks have a legal obligation to comply with Anti-Money Laundering (AML), know-your-customer (KYC) and other financial directives to prevent their services from being used for illicit activities. To comply with these regulations, banks should implement the following risk assessment and compliance procedures:

• Customer Due Diligence (CDD): Banks should conduct customer due diligence to verify the identity of their customers, assess their risk profile and determine whether they are politically exposed persons (PEPs). CDD includes collecting information on customers’ personal and business details, such as their name, address, and source of funds. Know your Customer (KYC) ensures that they have a personal knowledge of the customer and his/her business operations.
• Risk Assessment: Banks should conduct a risk assessment of their customers, transactions, products, and services to determine the level of risk they pose for money laundering and terrorist financing. This risk assessment should be updated regularly to reflect changes in the bank’s risk profile.
• Transaction Monitoring: Banks monitor customer transactions to detect any suspicious activity. This includes identifying unusual transaction patterns, such as large cash deposits or withdrawals, and transactions involving high-risk countries or industries.
• Suspicious Activity Reporting: Banks should have procedures in place to report any suspicious activity to the relevant authorities. This includes filing a suspicious activity report (SAR) with the Financial Intelligence Unit (FIU) in their jurisdiction.

WorldAML reinforces the banking AML, know-your customer (KYC) and customer due diligence (CDD) compliance capabilities by providing a comprehensive, rapid and effective research and investigation service. Via WorldAML’s API, this process can be automated and data imported directly into client databases for rapid risk assessment, monitoring and compliance. We take into account all US Federal Reserve, European Central Bank, European Banking Authority and other central bank requirements in our AML solution.

By implementing these procedures, banks can protect their customers, the integrity of the financial system, and their own reputation from risks ranging from terrorist financing to tax evasion and other illicit activity.