Anti-Money Laundering (AML)
Preventing illegal funds from entering the financial system through oversight and reporting.
Detailed Description
Anti-Money Laundering (AML)
What is the primary goal of Anti-Money Laundering (AML)?
The primary goal of AML initiatives is to detect and report suspicious activities that may indicate money laundering.
What are Suspicious Activity Reports (SARs)?
SARs are reports that financial institutions must file for any transaction that raises suspicion of money laundering.
Why is Customer Due Diligence (CDD) important in AML?
CDD is essential for assessing the risk a customer may pose in terms of money laundering by verifying their identity and understanding their financial activities.
What are the penalties for non-compliance with AML regulations?
Non-compliance can result in hefty fines, sanctions, reputational damage, and in extreme cases, revocation of a financial institution's license.
How do technological solutions enhance AML efforts?
Technological solutions like artificial intelligence and data analytics help financial institutions detect suspicious activities more efficiently and effectively.