Every jurisdiction in the world has an AML/CFT regime that complies, to varying degrees, with the 40 Recommendations set out by the Financial Action Task Force (FATF). Each jurisdiction’s regime is benchmarked for compliance with these Recommendations by a peer review process. Regulated firms in any jurisdiction will need to ensure that AML/CFT compliance is at the core of their business to ensure compliance with their national regime. In respect of USA regulations, The USA PATRIOT Act 2001 amends the Banks Secrecy Act by requiring all Financial Institutions to establish Anti-Money Laundering (AML) Programs. A strict customer identification program is required to be followed in order to verify the true identity of each customer. Some very large firms will have experienced at first hand fines in excess of £10m for failing to comply with their AML programs.
FINRA has noted the following persistent issues related to broker-dealers’ AML compliance:
- adequacy of some firms’ overall AML programs;
- allocation of AML monitoring responsibilities, particularly responsibilities for trade monitoring;
- data integrity in AML automated surveillance systems, especially in suspense accounts for processing foreign currency money movements and conversions;
- firm resources for AML programs; and
- independant testing of AML monitoring programs
Midshore can assist any business in complying with their local regime, as well as ensuring that changes to the regime are implemented in a timely and cost-effective way.
Midshore can assist by:
- Mapping AML/CFT requirements for your business
- Implementing appropriate changes to procedures & policies
- Ascertaining the need and scope of remediation
- Remediating your existing clients
- Assisting with your AML/CFT business risk assessment
- Ensuring a review and monitoring programme is established
- Providing progress reports and a final report detailing all work undertaken
- Training your staff on the latest AML/CFT regime either in-house or online
Different levels of service are available from consultation/advice to full programme management with a team of analysts & administrators to assist with remediation. Correcting or completing the documentation held on client files is one of the easy, but often overlooked, ways to ensure your business remains on the right side of regulation.
Midshore can also provide outsourced assistance as a valuable resource for your AML Compliance Person.
Midshore remains abreast of changes in the relevant AML/CFT regime and will implement regulatory changes into our programme as they are published. It is important for our clients to be sure that they are compliant with the latest AML/CFT requirements wherever they are based.