by Tim Shaw, Global Product Manager, IMX Software
Financial intelligence units around the world and the regulators responsible for implementing the new anti-money laundering (AML) regimes are quick to use statistics to prove the effectiveness of the new rules. However, some leading academics challenge these claims, and in fact say that there is no evidence to support the importance currently being attached to effective AML processes.
Compliance and reporting rules are now well and truly part of the everyday business landscape in every country. No matter whether you manage a one-person bureau de change or are the compliance officer for a global bank, you have the same obligation to satisfy the regulators that you have a robust anti-money laundering and counter-terrorism financing process in place within your business.
Unfortunately making these processes an intrinsic part of your business is costly and time-consuming, and not just during their implementation but as part of your on-going business. This applies to both the cost of buying and deploying an automated computer-based system, and the on-going labour costs of what is often to some extent a manual process. It is imperative, therefore, that financial institutions have a sound understanding of the in-country regulations they are required to follow, the processes that their business needs to put in place, and the most efficient method of implementing and enforcing these processes.