Business and Management

Anti-money Laundering Screening – Regulatory Trends And Developments

Common opinions about KYC and AML aren't quite distinguishable. For the uninitiated, the KYC or "Know Your Customer" is a part of AML or Anti-Money Laundering. Most countries have implemented KYC in various organizations, for example, the banking and financial institutions.

Over the years, drug cartels and Politically Exposed Persons have been involved in several murky transactions for illegal procurement and terrorism. Similarly, a few countries, with their nefarious designs, indulge in illegitimate activities via different routes.

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Compliance Solution Requirements

Since exporters are required to comply with the trade and export regulations, the compliance solution requirements include Due Diligence, KYC screening, transaction monitoring, reporting, risk assessment, etc.

Perhaps, monitoring transactions may not drive results expected from all corners, but stringent measures and their respective implementation have a deeper impact. We can consider the example of how sanctions have benefited in a huge manner.

Regulatory Trends & Developments

In 2016-17, a plethora of significant developments took effect. We can cite the standardization of customer due diligence by the Financial Crimes Enforcement Network, which demands identification, verification, and validation of customers. Financial institutions will have provisions for risk-based profiling, monitoring, and updating of records.

Securities & Exchange Commission, Financial Industry Regulatory Authority, and other organizations have also announced examination priorities in the year 2017. Indeed, the measures introduced for AML screening or AML transaction monitoring program, etc. are key requirements.

Screening Software for Exporters

If you are an exporter and find it hard with the BIS to track the watch list screening requirements, export regulations, export license requirements, ECCN, etc. you will definitely need the help of screening software.

A chunk of organizations/firms doesn't involve themselves in the regulatory compliance measures, thinking they would be only harming their core business processes. However, they must understand that non-compliance would result in civil or criminal penalization by the administrative authorities.

You need to find a trade compliance professional or consultant who can provide accurate information about the requirements for export to various countries. If it weren't the amalgamation of banned parties or countries, the entire process of customer screening would have become highly cumbersome.