Five pillars of AML/CTF firmwide framework

Compliance is key.

Every firm must have a strong AML/CTF program to stay safe and legal.

Here’s how to build a solid foundation:

→ Designated Compliance Officer: Appoint an experienced individual to oversee the AML/CTF program. They should stay updated on regulations, identify risks, and communicate with senior management.

→ Internal Policies, Procedures, and Controls: Develop comprehensive policies and procedures. Verify customer identities, monitor transactions, and report suspicious activities. Regularly update and review these policies.

→ Training and Awareness Program: Train employees regularly on AML/CTF regulations. Ensure they can identify suspicious activities and understand their roles in compliance. Use dynamic content updates and feedback mechanisms.

→ Business-Wide Risk Assessment, Independent Testing, and Audit: Conduct regular risk assessments and independent testing. Identify risks, evaluate controls, and recommend corrective actions. Maintain an audit issue log for follow-up.

→ Customer Due Diligence (CDD): Verify customer identities and assess risk profiles. Monitor transactions continuously and maintain comprehensive records. Implement a CDD refresh cycle based on risk profiles.

5 pillars of AML compliance within a firms AML~CTF framework.pdf

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