Correction Paroles Compliance - Why was it introduced? par Gabrielle

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On 9/11, 2001, a tragic terrorist attack took place in which 19 militants related to the extremist group al Qaeda hijacked four airplanes and administered suicide attacks against targets within the United States. Two of the planes were flown into the dual towers of the World Trade Centre in New York City, a 3rd plane crashed into the Pentagon just outside Washington, D.C., and the fourth plane crashed in an open field in Shanksville, Pennsylvania

Approximately 3,000 people lost their lives during the September terrorist attacks, which led to major U.S. initiatives to fight terrorism under the presidency of George W. Bush

To carry out the attack, the 9/11 planners spent between $400,000 and $500,000, which was majorly provided by al Qaeda. Albeit the origin of the funding is undisclosed, detailed inquiry has unveiled about the financial transactions that supported the attack

The hijackers and their financial facilitators used the anonymity provided by the international and domestic financial system to channel their funds via a number of hidden transactions
Although the existing financial mechanisms of the country were strong enough to prevent the misuse of the system they were not designed to identify and obstruct transactions that financed state terrorism

This ultimately led to the development of the KYC process and AML regulations as key components of the US Patriot Act, 2001. Later on, the Reserve Bank of India made it mandatory for banks across the globe to adopt these guidelines to prevent the financing of illegal activities..

How is the AML check conducted?

Money laundering and financing of terrorism are global issues. International authorities such as FATF and world bank are working with national authorities such as GDPR, FinCEN, FCA, FINMA, etc. and state banks to keep a close check on money laundering activities. Most of the countries are following the guidelines of the financial regulatory authorities such as FATF in impeding crimes such as money laundering

The Financial Action Task Force or FATF is a global body that provides suggestions to countries with respect to their efforts to restrict terrorist financing and money laundering. The countries mostly follow the 40 recommendations of the FATF to prevent money laundering

Governments and financial institutions have huge datasets of information regarding their citizens and these lists are regularly updated

The lists are provided to law enforcement agencies in case any illegal activity is done by an individual, to bring them under the law

One-time screening on individuals is not enough to monitor their financial activities, hence politically exposed persons (PEPs) and businessmen with a history of huge international transactions are regularly monitored with ongoing AML screening. This is to closely observe the person and their activities

AML Certifications and their need

Since the financial sector is the most crucial department of a country, therefore highly experienced and knowledgable individuals are hired in finance-related jobs

Various regulatory bodies have introduced a number of financial certifications to ensure that only the most eligible people join the department. After attaining these certifications, financial analysts and officers’ skills are recognised by all the major financial institutions and regulatory authorities across the globe

ACAMS (Association of Certified Anti-Money Laundering Specialists) is the biggest international membership body dedicated to expanding the information and skillset of monetary crime detection and prevention officers, from a broad range of industries, in both the overall public and private sectors

ACAMS offers the Certified Anti-Money Laundering Specialist (CAMS) doc*ments that validate the holder's expertise in anti-money laundering knowledge and skills

The ICBA (American Community Bankers Association) has introduced a certification called "Certified AML/CFT Compliance" to reinforce the power of monetary analysts to watch and stop suspicious activities with this outline of the kinds of criminal behaviour commonly adopted against financial institutes, including detailed training on the applicable U.S. laws and regulations governing money-concealment

Keeping in mind the consequences of untraceable money transfers, there is no second thought regarding the importance of introducing anti-money laundering and counter financing of terrorism techniques. All firms should adopt digital KYC techniques to cater to the illegal transfer to money across the globe

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