Anti Money Laundering Compliance

Anti-Money Laundering was put high on the agenda by the G7 group of countries in 1989 when they set up the Financial Action Task Force.  The FATF set out the first version of its Anti-Money Laundering recommendations in 1990.  Since September 11 AML has become more urgent and the FATF has added 9 special recommendations on Terrorist Financing.  With 31 countries in the FATF and a number of clones (Caribbean FATF and Middle East and North Africa FATF) and a number of other bodies who espouse the same principles, this is an important topic for most, if not all, countries.

Money Laundering is the disguising of illicit funds to make them appear legitimate.  Anti-Money Laundering sets out to ensure that no one with illicit funds is able to get them into the legitimate system and hide their true origin.  This is done through ensuring that anyone handling a financial transaction knows who the client is (Know Your Customer – person or organisation) and then checks for suspicious transactions.

Organisations have to ensure that they are following the regulations and laws of their country.  Given that most are based on the FATF recommendations, most have to follow the same rules.
Taking on a new customer requires levels of identification, checks with external sources, decision based on the reply (may be a number or a code), a different set of rules for non face-to-face account setup, a different set of rules for foreigners.
Checking existing customers requires a different set of rules
Keeping updated with changes to customers requires its own set of rules
Transactions also need to be checked and “suspicious” ones forwarded to a responsible person
These are the types of procedures where Workflow can assist the company to ensure that it is complying with the law.
Interested companies
Who would need to use workflow for Anti Money laundering Compliance
Financial institutions (especially banks but also insurance companies, money service brokers (bureau de change, Western Union outlets), accountants, lawyers).  The Central Bank. Financial regulators. Those who deal in large (>€15,000) cash transactions such as real estate agents.