How Do I Set Up AML Policy?

What are the 3 stages of AML?

There are usually two or three phases to the laundering: Placement.

Layering.

Integration / Extraction..

What triggers AML?

Acute myeloid leukaemia (AML) is caused by a DNA mutation in the stem cells in your bone marrow that produce red blood cells, platelets and infection-fighting white blood cells. The mutation causes the stem cells to produce many more white blood cells than are needed.

What should an AML program include?

An AML program must be in writing and include, at a minimum:policies, procedures, and internal controls reasonably designed to achieve compliance with the BSA and its implementing rules;policies and procedures that can be reasonably expected to detect and cause the reporting of transactions under 31 U.S.C.More items…•

What are the 3 main factors to consider in determining AML risk?

Inherent BSA/AML risk falls into three main categories: (1) products and services, (2) customers and entities, and (3) geographic location.

Who is responsible for AML?

AML programs should appoint a designated principal compliance officer who is responsible for overseeing the general implementation of AML policy within their institution. AML Compliance Officers should have sufficient experience and authority within their institution to ensure they can perform their duties effectively.

How do you mitigate AML risk?

Understand and mitigate AML risks with network visualizationVisualizing connections to a politically exposed person.Understanding the ownership structure of a beneficial owner.Knowing more about the originator / beneficiary in a correspondent banking system.

What is a high risk customer?

Higher Risk Customers are those who are engaged in certain professions or avail the banking products and services where money laundering possibilities are high. … Financial Institutions conduct enhanced due diligence (EDD) and ongoing monitoring for the higher risk customers.

What does an AML investigator do?

His duties include setting up or improving compliance and/or fraud teams, auditing procedures and revamping sanctions, anti-money laundering (AML) and fraud controls and programs at financial institutions. … Changes that are foreseen on the horizon are that financial crime investigations are only getting more complex.

How does AML work?

Anti-money laundering (AML) software is a type of computer program used by financial institutions to analyze customer data and detect suspicious transactions. … Once the software has mined data and flagged suspect transactions, it generates a report. A human will investigate and evaluate flagged transactions.

How do I become a good AML investigator?

The Top 6 Qualities that Make an AML Analyst GREAT!Ability to think outside of the box. When it comes to an AML review, one size does not fit all. … Be detail-oriented and organized. … Keep the financial system in mind when conducting reviews and think multiple steps ahead. … Be independent. … Stay current with industry trends. … Have patience.

What is risk in AML?

The first is the idea of geographic risk: the vulnerability to money laundering threats that countries face at a national level. The second is the idea of individual risk, the specific risks that financial institutions face from their clients and how their internal AML process manages that risk.

What is an AML model?

AML models aim to identify unusual activity that, upon investigation, may be suspicious. AML models are not intended to capture proven suspicious activity. The true productivity of an AML model is unknown, as even the best data scientist cannot prove whether 100 percent of all money laundering activity was detected.