5 Ways to Ensure Anti Money Laundering Compliance in 2024
A comprehensive guide ...
Posted by Alison Mead on 08/04/2024 @ 8:00AM
As a business owner, you are likely aware of the increasing importance of Anti Money Laundering (AML) compliance. With the Financial Conduct Authority (FCA) imposing heavy fines for non-compliance, it is crucial for businesses to stay on top of AML regulations ...
Stay informed about Anti Money Laundering legislation; stay compliant, and safeguard your business in 2024 and beyond!
In 2024, the FCA is expected to implement even stricter measures to protect businesses and customers from the financial and reputational damage caused by money laundering. To ensure your business meets the mark, here are 5 key steps to follow.
Invest time conducting your risk assessment
One of the central themes of the FCA's AML requirements is the need for regulated firms to provide evidence of conducting risk assessments on their customers. To comply with this, businesses must take a dynamic approach to mitigating risk.
This means tailoring risk assessments to individual clients and having measures in place to manage and prevent potential risks. It is not enough to simply have a risk assessment in place; businesses must also be able to demonstrate the steps taken to address identified risks.
Prioritise Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) during onboarding
Effective customer onboarding is not only important for attracting and retaining clients, but also for identifying and managing risks. By conducting thorough CDD and EDD during the onboarding process, businesses can identify any potential risks at the earliest stage possible. This allows for the implementation of appropriate measures and safeguards to prevent money laundering.
Commit to ongoing risk monitoring
It is important for businesses to recognise that the risk of money laundering does not end once a customer is onboarded. To protect your business and comply with regulations, it is crucial to conduct periodic reviews of existing client accounts. This allows for the identification of any changes in risk and the implementation of appropriate measures to mitigate these risks.
Provide adequate staff training for CDD
The FCA has identified a lack of informative and tailored training as a common reason for employees being charged with due diligence infractions. To avoid this risk, businesses must ensure that their staff receive robust, effective, and relevant training on AML regulations and financial crime risks. This not only helps with compliance, but also protects the business from financial and reputational loss.
Follow remediation plans through to completion
In the event of any compliance deficiencies, it is important for businesses to have a plan in place to address and rectify these issues. This includes conducting a thorough assessment of AML processes, systems, and controls, and implementing remedial plans to address any deficiencies. It is crucial for businesses to follow through with these plans and ensure that they are completed in a timely and effective manner.
Staying on top of Anti Money Laundering regulations is crucial for businesses in the financial services sector. With the FCA implementing stricter measures in 2024, it is important for businesses to take a proactive approach to compliance.
"Invest time in your risk assessments!"
Businesses that prioritise due diligence during onboarding, commit to ongoing risk monitoring, provide adequate staff training, and follow through with remediation plans can protect themselves and their customers from the damaging effects of money laundering.
Stay informed, stay compliant, and safeguard your business in 2024 and beyond.
Until next time ...
ALISON MEAD
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about anti money laundering, it may be a great idea to give me a call on 01604 217365 and let's see how I can help you.
Alison loves bookkeeping and supporting bookkeepers. She has been helping clients to be better bookkeepers in Sage 50 for over 24 years and has been Xero Accredited in accounts and payroll for a number of years too.
She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.
Alison combines her role at Silicon Bullet with her Forever Living network marketing businesses and is often to be seen at business networking meetings as she likes to keep busy.
You know what they say: if you want something done well ask a busy person!
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