When the EU was first formed, there were a lot of complications in bringing together many disparate financial regulations from different countries. With many regulations in place, the risk of fraud and money laundering was recognised as a huge risk, and in 2015, The Fourth Anti-Money Laundering Directive (AMLD) was introduced.
With the introduction of the AMLD, regulations surrounding compliance, reporting, and auditing have become much stricter for every member if the European Union and the regulations surrounding money laundering are much more complex and wide-reaching than ever before.
What constitutes money laundering?
Money Laundering is a shockingly common criminal practice. It involves passing money that is obtained illegally through the finances of a business as a way of removing traces of the origins of the money. Some companies are established for the sole purpose of laundering money.
When the EU was formed, different financial regulations in each country made the possibility for money laundering more likely, and the Fourth AML Directive was created to help create universal regulations and cut down on money laundering fraud.
Completing an AML Review
Completing an Anti-Money Laundering (AML) Review is a requirement for businesses within the EU, and the purpose is to determine who truly owns businesses, accounts, and trusts. The Fourth AMLD was created in part to ensure no European activities were funding terrorism, and there was complete financial transparency among the united countries in the EU.
In an AML review, the products, services, clients, and operation details of a business are confirmed and noted. In a complete review, the business will diverge complete ownership details, information on which areas of the EU the business operates in, the financial history and health of the organisation, and all internal policies.
For any business not involved in fraud, conducting an AML Review is simply a compliance requirement and one that can help protect a business from future risk. Any business is open to fraud through error, or through the illegal actions of an employee or vendor – and an AML helps prevent these issues by ensuring important policies and procedures are in place.
Compliance is the name of the game at Active Optimus Group. Our compliance services will ensure your business is in complete compliance with the Fourth AML Directive, and other financial regulations mandated in your area. We conduct a complete assessment of your business, noting the risks, areas for improvement, and what needs to be done to fall into compliance. When our compliance and review services finish, you’ll know without a doubt that your business is functioning within regulation and is safer than ever from the risk of fraud or error.
How do I Conduct an AML Review?
A complete AML review requires an outside expert to review your business and operations to be sure you’re in compliance. Active Optimus Group offers a compliance monitoring program, which gives you access to personal onsite visits from our professional compliance staff. We will visit every part of your operation to ensure you meet regulations in every way.
To take a view of your operations, our compliance specialists will usually do a random review of the different files within your operation, ensuring they adhere to AML regulations. We’ll look at your standard operating procedures, your administrative guides, your documentation, and storage of client files, and how you conduct due diligence in your business dealings.
With all these items of information, Active Optimus Guernsey can give any business a complete risk assessment, and list of tasks they must complete to comply.
Is an AML Review Mandatory?
An Anti-Money Laundering Review is not mandated for every single business in the European Union, but it is something that every business should try to undertake. Businesses and individuals who work within the financial sector are mandated by law to conduct regular AML reviews to reduce risks to their business, and the larger community.
Money Laundering benefits only those who get away with the crime; it poses a massive financial risk to businesses, and individuals who may fall into the scheme. Many businesses have fallen victim to an immoral employee who saw a loophole in procedures, and regular AML reviews help to reduce your financial and reputational risks.
With new technologies and procedures developing all the time, and an increased emphasis on global transactions, businesses now face the additional risk of falling victim to Money Laundering schemes. These changes mean that antiquated systems of auditing and control may fall short when it comes to combating modern money laundering fraud.
Active Optimus Group Guernsey provides a thorough review of all the risks associated with money laundering and can help you understand and mitigate them. We’ll review every part of your operations, identifying risks and points of security that must be improved. When our assessment is complete, we’ll have a complete set of improvements to follow to get your business up to date and in compliance.