Organizations are susceptible to money laundering, and while there is no sure-fire way to prevent money laundering, there are definitely ways you can combat and decrease it. Here are some excellent strategies that you can implement to combat money laundering.
Most digital payment methods are traceable. It is easy to track down who sent money, what time it was sent, where it was sent from, how much was sent, and more. Therefore, it is harder to launder money online because it is easy to track the payments from the sender to the recipient, so instilling more digital payments can decrease money laundering.
Get AML Specialists
An AML specialist is an anti-money laundering specialist. Their job is to increase the capability of identifying and predicting risks that international and local operations may face. By doing so, it decreases how many regulatory sanctions would occur. However, keep in mind that AML specialists are expensive, and they are more effective for long-term solutions. Therefore, do not expect most AML specialists to address financial crime immediately, so they may not be able to fix short-term problems, you can find these specialists at TaxCorporation.
Improve Your AML Policies
Creating a good AML policy framework is another must for organizations. The AML policies must meet the AML obligations, and ought to be easy to validate for regulators. They should also be easy for compliance analysts to understand. Try to make sure that your policies are always up to date.
If you want to make sure that your organization meets AML obligations, the fastest and most efficient way to do so is by hiring an AML consultancy/consultant. These consultants are experts at AML transaction monitoring, know your customer, and client onboarding frameworks (they are especially good at implementing these frameworks). Again, remember that it will be difficult to choose a good consultant and it will still come with a hefty price tag.
Data scientists can be helpful to support predictive modeling and data analytics for AML. By using data analytics along with predictive modeling, they will automate your AML processes as an innovative solution to your money laundering concerns. Plus, it can help speed up your processes, like transaction monitoring and CDD.
Upgrade Your AML System
Even if you already have an AML system in place for your organization, there will come a time where you have to assess whether it still works for you. Technology constantly advances, so you need to keep it up to date to protect your organization. Therefore, you will need to upgrade your whole AML system, especially if it is not up to par.
Of course, be prepared for the costs and time that it will take to upgrade a whole AML system. AML systems do not generate revenue, so most organizations do not see them as a top priority. However, you should not ignore it as it is crucial to your business’s safety.
While there is no guaranteed way to keep your organization free from money laundering, the strategies above can surely decrease and discourage people from doing so.