By Legal Futures Associate VirtualSignature
Money laundering large amounts of illicit funds is a serious and threatening problem for the financial and professional services sectors.
The NCA (National Crime Agency) estimates that the amount of money laundered annually in the UK could be anywhere between £36 and £90 billion, so organisations are encouraged to make sure they have AML (Anti-money laundering) practices in place.
What is AML?
AML is the set of rules and laws put in effect to stop and deter money laundering. AML regulations are controlled by UK law enforcement, and failure to comply with these regulations can lead to hefty fines. Additionally, the regulator can criminally prosecute employees who have actively engaged in money laundering or have allowed it to take place.
How to be UK AML Compliant
The required processes need to be in place to be AML compliant:
- Risk assessment of what money laundering issues the business could face
- KYC (Know Your Customer) and CDD (Customer Due Diligence Checks)
- AML screening
- Ongoing monitoring of existing customers
- Recording due diligence results, transactions, and any other customer communications
- Reporting any suspicious activity detected to the NCA
- Understanding an organisational structure to deal with financial crimes
How money laundering affects UK businesses
Money laundering schemes involving financial and professional services are usually covertly operated within a legitimate process or service.
Businesses can then be unknowingly exploited by criminals to move and store large amounts of money and for the whole operation to be concealed effectively.
Automating AML
Becoming and remaining AML compliant can be a huge drain on time and resources, especially when faced with constant checks every time you onboard a new customer. An automated process would eliminate this problem and speed up AML.
Moreover, an automated AML solution would lessen the chances of human error, and by extension, the chances of non-compliance and subsequent fines.
Your organisation’s reputation could also take a hit from being non-compliant, so automating is a safer, risk-free method of being compliant and avoiding any financial and reputation-damaging blows.
How can I use automated AML?
Automate AML today using VirtualSignature digital engagement applications. They provide the speed and simplicity that help increase contract closures and enable businesses to complete client authentication and identity verification online in a matter of minutes.
Get in Touch
If you would like to find out more about how VirtualSignature.com can help with your digital onboarding or discuss a particular solution that will fit your organisation’s requirements, then give our team a call on 0333 335 5176 and we’ll be pleased to demonstrate how the platform works.
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