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Anti-Money Laundering Policy (AML)

Money laundering is a process of legalizing money in which a person takes acts that obscure the source of funds in order to make their nature lawful. Anti-money laundering (AML) comprises a series of measures aimed at preventing the financial system or banks from being used for money laundering or terrorist financing. AML measures and instruments are standardized worldwide and implemented by international and national institutions, banks and commercial enterprises. Every bank and other financial institution and other business entity must comply with AML laws and regulations. To obtain a banking license, the bank must approve AML compliance and provide an AML policy. The AML Policy may be updated as needed or in response to current AML trends and practice.

The team of experts at Confidus Solutions will provide you with the latest information on the AML directive and its requirements.

Core principles of the AML Directive Although AML policies can vary from bank to bank, the most important principles are common customer due diligence procedures (CDD) based on the know-your-client principle. The due diligence process is based on the information provided by the customer in the questionnaire. This questionnaire must be updated regularly. If the person transfers funds significantly in excess of the declared cash flow, the bank may ask additional questions to verify the purpose of that transfer. If the company changes its business profile, it must inform the bank. In addition, when the company starts working with a new company, it must inform the bank to ensure a smooth transfer process. Usually banks or other large financial institutions have a special department that challenges AML. This department is called the Legal Compliance Department.

AML and customer due diligence definitely impact customer privacy. The purpose of the investigation, however, is based solely on the protection of the public interest and the prevention of financial crime and the support of terrorism. As a result, the lack of an investigation would seriously threaten the European Union's internal market.

Objectives of the AML Directive The AML Directive was introduced with the ultimate aim of creating a general framework for combating money laundering, terrorism, corruption and other financial crimes. The other goal is to protect the community from legalization of money and to ensure that the organization complies with relevant laws and regulations.

The introduction of an AML policy is intended to provide a transparent and traceable cash flow that must be maintained in order to prevent terrorist financing and to control its use by suspected terrorists and criminal groups as well as their own financial resources. Full transparency and traceability of money transfers is an important and valuable mechanism in the prevention, identification and investigation of money laundering and terrorist financing. If the bank detects a suspicious transaction, it can freeze funds until the customer provides a reason.

http://www.confiduss.com/en/services/corporate/legal/aml-policy/