Increased focus on money laundering risk by the Senior Management
The estimated amount of money laundered globally in one year is 2-5 percent of the global GDP, or USD 800 billion – USD 2 trillion. Increasingly, the financial services industry is looking at anti money laundering compliance as a key concern area, with it figuring as an important point of discussion for board of directors and senior management on a frequent basis. Organizations are using AML compliance as a parameter to measure senior management performance, which in turn is ensuring accountability across organizational processes and products. Increasing internal focus by the organizations on AML coupled with the external factors such as high profile corruption cases, terrorism, heavy fines paid by global financial institutions and FATF membership is gradually leading to tighter AML compliance
FATF: Membership comes with increased responsibilities
The commitment of financial institutions to the Financial Action Task Force (FATF) standards is crucial for the fight against money laundering and terrorist financing. India’s membership and commitment to FATF standards will eventually lead us to attain an equal footing with other developed countries on compliance with AML regulations. The financial services industry has recognized the changes due to FATF membership and our respondents believe that scrutiny is intensifying primarily on customer identification procedures (KYC) and transaction monitoring and reporting. Increasingly, financial institutions are evaluating the inherent AML risks in their products and services/ delivery channels/ transactions and taking steps to mitigate those risks.
Detailed report link: here
