AML Compliance and Risk Management Solutions

AML (Anti-Money Laundering) compliance involves implementing policies, procedures, and controls to detect and prevent financial crimes like money laundering and terrorist financing. It ensures financial firms comply with regulations and avoid legal and reputational risks.

Advisory firms assess operational, financial, and compliance risks to create risk mitigation strategies, implement internal controls, and ensure regulatory alignment. Advisory firms can also help independently test or validate financial firms’ AML programs.

AML regulations vary by jurisdiction but commonly include:

• The Bank Secrecy Act (BSA) and USA PATRIOT Act (U.S.)
• The Financial Action Task Force (FATF) international guidelines
• The EU’s Anti-Money Laundering Directives (AMLDs)
• The Financial Conduct Authority (FCA) AML rules (UK)
• FinCEN, SEC, and FINRA compliance obligations for financial services firms

Non-compliance can result in hefty fines, loss of licenses and/or other regulatory disciplinary actions as well as reputational damage, and legal action against firms and individuals responsible for compliance failures.

Firms conduct an AML risk assessment by analyzing customer profiles, transaction types, geographies, and business operations to identify vulnerabilities and implement risk-based controls.

An RBA prioritizes AML efforts based on the level of risk associated with clients, transactions, and jurisdictions. High-risk entities require enhanced due diligence (EDD), while low-risk clients may undergo simplified due diligence (SDD).

We provide risk-based AML compliance programs; investor, customer and/or third-party diligence, AML program gap analysis and audits, and regulatory guidance to ensure firms meet global standards and avoid enforcement actions.

KYC is the process of verifying a client’s identity and assessing their risk profile to prevent financial crime. It includes collecting personal and business information, screening against watchlists, and conducting ongoing monitoring.

• CDD is the standard verification process for most clients.
• EDD applies to high-risk clients (e.g., politically exposed persons [PEPs] or entities in high-risk jurisdictions) and requires additional verification measures.

KYC and CDD should be updated periodically (annually or based on risk level) and whenever a material change occurs (e.g., changes in ownership, suspicious activity).

AML transaction monitoring involves automated surveillance of financial transactions to detect suspicious patterns, such as large cash deposits, rapid fund movements, or activity inconsistent with a customer’s profile.

Firms must file Suspicious Activity Reports (SARs) with regulators like the Financial Crime Enforcement Network (FinCEN) or the Financial Conduct Authority (FCA) when they detect potential money laundering, fraud, or other financial crimes.

We offer custom AML compliance programs, advisory services, regulatory guidance, and AML technology solutions to help firms stay compliant and reduce financial crime risks. In the case of advisers subject to FinCEN regulations in the U.S., ACA also offers independent testing of AML programs.

Firms should:

• Conduct a risk assessment
• Implement KYC, CDD, and EDD procedures
• Use AML transaction monitoring software
• Provide ongoing employee training
• Establish reporting mechanisms for suspicious activity
• Arrange for periodic testing of the AML program

Our AML Risk Management solutions include customer due diligence (CDD), transaction monitoring, and reporting tools to detect and prevent financial crimes like money laundering and fraud.

We offer real-time monitoring, automated alerts, and regulatory reporting tools that ensure your business remains compliant with both local and international AML regulations.

AML refers to broader anti-money laundering efforts, while KYC is focused on verifying customer identity to prevent fraud and money laundering.

Penalties can include significant fines, legal consequences, and damage to your company’s reputation for failing to detect or report suspicious activities.

Our solution uses advanced analytics and machine learning to detect suspicious transactions in real-time, ensuring you can take immediate action to mitigate risks.

We recommend reviewing and updating your AML policies regularly, particularly when there are regulatory changes or when your business undergoes significant shifts.

Yes, we offer customizable AML solutions that cater to the unique requirements of various industries, including financial services, healthcare, and gaming.

Our solutions are designed to integrate seamlessly with your current systems, enhancing your compliance efforts without disrupting your operations.