anti money laundring

Companies Must Comply AML Regulations

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Why companies must comply with AML regulations right now. So far, financial institutions were the most regulated, but henceforth all companies from every sector must implement strict compliance processes in their internal policy to abide by the rules.

What necessitated these additional guidelines?
Too many companies have not been taking compliance seriously and do not implement compliance processes internally because they believe they do not fall within the category of regulated financial institutions. A few have been taking advantage of confidentiality policies offered by free zone entities while others have been benefitting from being in non-financial or professional sectors. But now it is set to change as regulations have broadened its footprint with a new focus on non-financial businesses and professional sectors such as real estate agents, gold dealers, auditors and corporate service providers.

In today’s heightened business and regulatory climate, it is absolutely critical to correctly identify who you are dealing with. Especially when an institution creates a new business partnership with an organisation or individual, regardless of the industry, it is important to verify their credentials to meet know your business (KYB) and AML guidelines in order to avoid regulatory fines and reputational damage. It starts with the customer and third-party onboarding process:

• Verification of the existence of the company/individual (KYC/KYB)

• Verification of the compliance of the subject (sanctions, PEP, adverse media)

• Verification of the company hierarchy and ultimate beneficiary owner (who is the real owner of the subject)

• Conduct of due diligence process (field investigation) to get all final checks done

• Monitor all third parties all year long and investigate any red flag or alerts