Anti Money Laundering (AML)

Anti Money Laundering refers to the laws, regulations, and institutional controls that prevent, detect, and report laundering and terrorist financing. Core program elements include a written policy, a designated compliance officer, training, independent testing, customer due diligence, screening, transaction monitoring, investigations, and regulatory reporting such as SAR and CTR filings. A risk assessment informs controls, scenarios, and staffing. Governance requires board oversight, model validation, data lineage, and quality management. Effective AML programs integrate fraud and cyber signals, use graph analytics for networks, and employ continuous monitoring and event driven reviews. Documentation and audit trails are essential to demonstrate effectiveness to regulators. When executed well, AML frameworks reduce exposure, safeguard customers, and protect access to correspondent banking and payment networks.