How To Comply With Regulations of Anti Money Laundering (AML) and Counter-Financing of Terrorism (CFT).
Under the Bank Secrecy Act and the USA Patriot Act, banks and financial institutions must take a risk-based approach to AML/CFT and implement the following compliance measures:
AML program: Firms must develop and implement an internal AML/CFT program designed to match the risk profile of their customers and business sectors. The program should consist of written policies and procedures detailing the firm’s approach to:
- Customer due diligence
- Transaction screening and monitoring
- Adverse media and PEP screening
- Sanctions screening
Reporting and Record-Keeping: In compliance with the BSA, firms must maintain detailed records on their customers and submit reports to the BSA when their customers engage in certain transactions or financial activities. Amongst these responsibilities is the submission of suspicious activity reports (SARs) for transactions over $5,000 or for transactions that are suspected to be in violation of the BSA.
Compliance Officer: An individual employee should be appointed as chief compliance officer to oversee their firm’s AML program and be responsible for arranging audits. The designated AML officer must have sufficient authority (ideally management level) and professional experience to carry out their duties effectively.
BSA Training: Firms should ensure their employees receive the training they need to fulfill their compliance responsibilities. Firms must also ensure a schedule is in place to deliver ongoing training to employees in line with changes to AML laws.
Source => https://complyadvantage.com/knowledgebase/aml-regulations-united-states/