Challenges of the AML Compliance Department

AML compliance department plays an important role in protecting the financial system’s integrity and preventing crimes like money laundering and terrorist financing. They assess enterprise-wide risk and prepare and implement relevant AML/CFT policies and procedures for Financial Institutions and Designated Non-Financial Businesses and Professions (DNFBPs). However, in doing so, the AML compliance department faces several challenges.

The department must keep up with the rapidly changing business dynamics and balance it with AML compliance.

Even the AML regulations and ML/FT typologies are ever-evolving. The AML compliance department must know the latest money laundering and terrorist financing typologies and regulatory amendments to keep the internal policies updated.

They must also remain updated with customer profiles and risk ratings to identify and manage the risks effectively.

Lastly, one of the complex challenges the AML compliance department faces is having adequate resources for AML Compliance. Whether it’s people, processes, or technology, reliable resources are required to ensure no gaps exist in AML compliance.

AML India is an AML consultancy firm assisting reporting entities in India to overcome the challenges observed by the AML compliance department. We help smoothen your AML compliance journey by customizing your AML/CFT policies and keeping it up-to-date with changing regulations and emerging financial crime risks.