Anti-Money Laundering Practices Should Focus on Proactive Detection, Not Defensive Monitoring


DISYS Explains 6 Components of an Anti-Money Laundering Plan

Editor’s Note: The below article appeared in FEI.org. The full article can be found here.

An Anti-Money Laundering (AML) plan can expand based on organizational needs, but should include 6 vital components.
It is estimated global money laundering transactions are in the $1 trillion to $2 trillion range – numbers that, if measured as a country’s economy – would rank in the top 10 economies in the world.

It is also no small secret with this heightened awareness and the fines associated with non-compliance of Anti-Money Laundering (AML) regulations, profits are taking a hit. In fact, since 2008, more than $321 billion has been paid out in fees from the finance industry alone.

At this cost, the laser focus on identifying and resolving these issues is no surprise – as companies seek to determine what route they will take in recognizing, auditing and reporting money laundering transactions. A vital, comprehensive plan should be created to outline all of the functions of effective monitoring and the roles and responsibilities of those who are managing it.

Effective monitoring on the risk assessment side is no longer good enough when it comes to finding liability and regulatory efficiencies. Companies can no longer play defense against money laundering crimes – they must take an offensive stance that doesn’t just evaluate risk, but identifies and resolves it before it becomes a reality.

Read Full Article Here | Spotlight: Anti-Money Laundering