Anti-Money Laundering (AML) policies and procedures have always been subject to constant, rapid change. But as the world adapts to post-pandemic working practices and ongoing geopolitical uncertainty, regulations have never been stricter – and organisations are facing a constant battle to keep up with obligations and expectations.
In response to the crisis in Ukraine, the UK’s Economic Crime (Transparency and Enforcement) Act 2022 is one such example of a bill that has now come into force.
Watch our 5 minute briefing to find out more about this Act and what it means for compliance teams.
The recent UK Money Laundering and Terrorist Financing (Amendment) (No. 2) also featured updates on a number of areas such as cryptoasset transfers, suspicious activity reports and reporting requirements around beneficial ownership.
Updates, revisions, and amendments to AML policy are continuous. And so they must be to better protect and serve society at large.
So, how can organisations stay up to date with AML changes and ensure remain compliant with the latest compliance regulations?
Continuously validate customer identity with automation
Build a powerful armory: employees and trusted partnerships
Sufficient due diligence and Know-Your-Customer (KYC) data provides a clear and complete picture of ownership, with the ability to analyse patterns and spot anomalies – ultimately protecting assets.
Continuous monitoring is a necessary component of KYC, in order to stay on top of changes in firmographics, beneficial ownership, sanctions and other factors that might impact the risk posed by a customer. But it presents an arduous task for most organisations and runs the risk of non-compliant reviews should regulations change.
As such, companies are now looking at the benefits of Perpetual KYC (PKYC) as a solution to maintain customer profiles dynamically. PKYC presents an emerging opportunity as it automates all periodic KYC review process steps end-to-end, enabling risk assessments to be adjusted when new information arises.
Organisations can continuously monitor the accuracy of a customer’s identity and identify risk factors with PKYC – a crucial element to staying ahead of any suspicious or fraudulent activity while also ensuring reviews are compliant with the latest regulations.
Find out more about the benefits and challenges of moving to a PKYC model here.
Another example of constantly evolving policy includes the UK government’s announcement in June to reform its AML and Counter Terrorist Financing (CTF) regulations.
Simply staying on top of these ongoing changes to both regulations and customer data can be a considerable task – however being well informed in both of these areas is fundamental to being prepared for any upcoming changes. It can be particularly difficult for companies trying to go it alone.
When it comes to staying on top of AML regulations, there’s strength in numbers, and finding a trusted partner to support you by providing verified data and technology at your fingertips to support your due diligence efforts, can better ensure business compliance.
Additionally, promoting regular training opportunities for employees on emerging or potential risks stemming from a variety of areas – such as ESG or emerging technologies – is a critical form of maintenance for any AML practice to withstand regulatory scrutiny.
To discover how Dun & Bradstreet can help your organisation stay on top – and get ahead – of AML and other financial crime regulations, click the button below.