AML Basics
Laws, policies, and procedures designed to prevent criminals from disguising illegal funds as legitimate income.
What is Anti Money Laundering (AML)
This officer is responsible for receiving and reviewing internal reports of suspicious activity within the Association.
Who is the MLRO?
What is Know Your Customer (KYC)?
Drug trafficking, fraud, human trafficking, corruption, tax evasion, or smuggling.
What is Predicate Crime ?
The act of providing or collecting funds to support terrorist activities .
What is Terrorist Financing ?
For a period of at least seven (7) years from the date of the commencement of the account, one off transaction, or end of the business relationship.
How long must SVBLA retain records ?
When standard customer due diligence is not sufficient due to elevated risk, compliance officers must perform this more intensive review.
What is Enhanced Due Diligence (EDD)?
This process helps organizations detect suspicious transactions that could be linked to terrorist financing.
What is transaction monitoring?
What is Customer Due Diligence (CDD) ?
This global organization publishes lists that help countries and institutions combat money laundering and terrorist financing.
What is the Financial Action Task Force (FATF)?
Liable to imprisonment ,payment of a fine up to a maximum of $500,000.00 or both.
What is the fine for tipping off ?
This ongoing process involves regularly reviewing customer transactions to ensure they are consistent with the customer’s risk profile and source of funds.
What is Ongoing Monitoring?
Unusually large cash deposits or activity inconsistent with a customer’s profile.
Examples of Suspicious activities .
All other regulations relating to Money Laundering flows from this ?
Up to date staff training awareness and testing of knowledge .
What is the Legal responsibility of SVBLA ?
Financial institutions must determine this person who ultimately owns or controls a company or legal arrangement.
Who is the Beneficial Owner?
To protect the association and prevent crime and terrorism .
Why is AML important ?
When staff notice suspicious transactions that may be linked to terrorist financing, they should submit this type of report.
What is a Suspicious Activity Report (SAR)?
Fines,Penalties,reputational damage or legal action.
What happens if AML rules are not followed ?
This key CDD requirement involves understanding how a customer earns their money and where their wealth originates.
What is Source of Funds or Source of Wealth?
A customer making multiple small deposits to avoid reporting thresholds is engaging in this suspicious practice.
What is Structuring (or Smurfing)?