KYC AML Framework Implementations

Over the past decade we have seen a substantial increase in legislation specifying how legal entities such as banks, plus their branches, life insurers, payment service providers, electronic money institutions, foreign exchange institutions, trust offices, etc. (referred to in the Dutch Money Laundering and Terrorist Financing (Prevention) Act (WWFT)), combat financial crimes, including money laundering and terrorist financing.

Today, organisations across the world implement various measures against these crimes, but a compliance programme is the most effective option for your organisation. As experts in the compliance/anti-financial crime business, we have taken the liberty of listing the key components of an effective Know Your Customer (KYC)/Anti-Money laundering (AML) framework.

What is a KYC/AML framework

Within the framework, we create a methodology that defines how an organisation monitors accounts and detects and reports financial crimes to the relevant authorities. Essentially, a complete and effective framework tackles the inherent and residual money laundering risks faced by a company.

In order to develop an effective KYC/AML framework, the company must understand the specifics and role of legislation in KYC/AML practices and what is required of a specific framework covering both the first and second lines.

Requirements of an Effective Framework

An organisation’s KYC/AML framework should be able to detect money laundering, tax evasion, fraud and terrorist financing through its accounts. It should have systems and procedures in place to immediately report money laundering activity to relevant authorities and also evaluate clients’ risk profiles based on such information.

Developing a KYC/AML framework.

When creating an anti-money laundering framework, an organisation must consider certain factors, such as the risks it is exposed to, anti-money laundering laws within its jurisdiction and the profiles and businesses within its customer database.

What can Bluemonks do for you?

BlueMonks can support your organisation by setting up the entire KYC/AML framework. With extensive experience in both first and second lines of defence and project management, BlueMonks is able to create a bridge and set up the entire framework, covering both initiation and implementation in first and second lines of defence. BlueMonks has a customised approach.

As cross-border and global roll-out is within its field of expertise, BlueMonks takes into account relevant legislation and country specifics. To view our summarised step-by-step approach and other related topics, click the links below:

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