Stay compliant with Veriphy’s AML checklist 

In today’s interconnected financial landscape, adhering to Anti-Money Laundering (AML) regulations is crucial for businesses operating both within the UK and internationally. Understanding these standards not only ensures legal compliance but also safeguards your organization’s reputation. 

UK AML compliance framework 

The UK’s AML regulations are primarily governed by the following: 

1. Proceeds of Crime Act 2002 (POCA): This act establishes the primary offenses related to money laundering and outlines the obligations for businesses to report suspicious activities. 
2. Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017): These regulations mandate that businesses implement risk-based customer due diligence measures and maintain comprehensive records to prevent money laundering and terrorist financing. 
3. Sanctions and Anti-Money Laundering Act 2018 (SAMLA): SAMLA empowers the UK to impose sanctions and update AML laws, ensuring alignment with international standards post-Brexit. 

The Financial Conduct Authority (FCA) oversees compliance with these regulations, ensuring that financial institutions adhere to the established AML standards.  

International AML standards 

Globally, the Financial Action Task Force (FATF) sets the benchmark for AML practices. The FATF’s recommendations serve as the foundation for AML laws in numerous countries, promoting a cohesive international approach to combating money laundering and terrorist financing. 

Additionally, the Wolfsberg Group, an association of global banks, has developed AML principles that provide guidance on best practices for financial institutions worldwide.  

Introducing Veriphy’s AML compliance checklist 

To assist businesses in navigating these complex regulations, Veriphy offers a comprehensive AML Compliance Checklist. This resource distills essential AML legislation and regulatory recommendations into six key components: 

1. Identity verification: Implementing electronic methods to validate customer identities, as emphasized by the 5th EU Directive. 
2. PEP check: Screening for Politically Exposed Persons (PEPs) and conducting enhanced due diligence when necessary. 
3. Watchlist screening (Sanctions check): Ensuring your business does not engage with individuals or entities listed on sanctions watchlists. 
4. Written AML policy: Developing a thorough policy detailing your firm’s AML procedures, including risk assessments, monitoring controls, and reporting protocols. 
5. Training: Providing mandatory AML training for all staff to recognize and handle suspicious activities appropriately. 
6. Continuous reviewing: Maintaining an ongoing process of verifying, monitoring, and managing AML compliance throughout the client relationship. 

By leveraging Veriphy’s checklist, businesses can streamline their compliance processes, ensuring adherence to both UK and international AML standards. For a detailed overview of these components, you can refer to Veriphy’s AML checks for both small to medium enterprises and large businesses.  

Staying informed and utilising comprehensive tools like Veriphy’s checklist are vital steps in maintaining robust AML compliance in today’s dynamic regulatory environment. 

Want to learn more about how Veriphy can support your AML compliance strategy? Get in touch today.