Image

Anti-money laundering (AML) compliance is an integral part of identity verification and a regulatory requirement for financial businesses. AML compliance is, on one hand, a granted process when it comes to authenticating the identity of customers. 

On the other hand, it is a time taking and overall cumbersome process that takes hours to verify the identity of one person. Verify Identity by Shuftipro has now remodeled the solutions that align well with the customer as well as business requirements. 

Anti-money Laundering (AML) and Countering the financing of terrorism (CFT) are an integral part of mitigating the risk of financial crimes. AML/CFT compliance is important for businesses as it takes into consideration the crime prevention regulation in financial businesses. 

AML compliance is crucially important for the business entities which has now become a strict regulatory requirement for all the financial businesses. As per regulatory obligations, AML/CFT compliance is a necessary part of every business entity that could help prevent financial crimes such as money laundering and funding for terrorist activities. 

The money sources and amount is disguised in such a way that its original source could be hidden. The illicit funds are concealed to avoid regulatory penalties and hefty fines.  

US AML Regulations and It's Process

The US AML regulation is the one most stringent with respect to the prevention of financial crimes. The following are some AML regulations that declare the demand for identity verification and screening of customers becoming part of financial businesses. Whether they are banks, financial institutes, insurance companies, or crypto exchanges, all should take into account the regulatory measures to comply with these regulations.  

FATF

FATF or Financial Action Task Force is an intergovernmental body, which aims at eliminating financial crimes such as money laundering and terrorist financing all over the world. The organisation provides recommendations and changes which are required for financial businesses to deal with financial crimes. 

AMLD5

AMLD5 is an EU regulation that primarily focuses on cryptocurrency exchanges and virtual financial services providers. E-wallet providers are also part of these institutes which are under the regulations of AMLD5. 

The regulations have made it compulsory for the crypto exchanges to ensure KYC (Know Your Customer) regulations for identity verification. Other than this, identity verification includes the screening of individuals against AML updated lists and criminal records. 

Screening of Ultimate Beneficial Owners (UBOs) to mitigate the risks of bad actors who can be harmful to the business entities. 

AMLD6

Some amendments in the AML regulations are declared in the AMLD6 which provide a more stringent regulations against EU financial crimes belonging to financial institutions and cryptocurrency exchanges. Criminals’ liabilities should be understood to identify the risks associated with financial businesses. 

BSA/AML Certification

The Bank Secrecy Act (BSA) 1970, which is also called the “Currency and Foreign Transactions Reporting Act”, is the regulation of U.S. law that requires all the financial institutions that are operating in the United States that help the U.S. government when it comes to detect and prevent an array of financial crimes in which money laundering is the primary one. 

BSA/AML certification is part of the AML regulations which is important for all financial institutions and they should comply with them to avoid regulatory penalties and fines among which not only the years of imprisonment but also business asset freezing and abandonment are the penalties. Businesses should be vigilant ion adopting such solutions that help them comply with regulations and that could align well with the demands of customers.