What should an Anti-Money Laundering (AML) compliance framework do?

An AML compliance framework should ensure that a financial institution is able to detect suspicious activities associated with money laundering, including tax evasion, fraud and terrorist financing. It should focus not only on the effectiveness of internal systems and controls developed to detect money laundering but also on the risks posed by the activities of customers with whom the institution does business.<br/><br/>

It should be built on a strong understanding of the regulations around AML and be overseen by personnel who are sufficiently experienced and knowledgable to create a climate of compliance at every level of their organisation.