What we do
Know Your Customer (KYC)
This is a core task where institutions gather detailed information about their customers to verify their identity and assess the potential risk they pose. Information includes name, address, government-issued ID, and other data.
Risk Assessment
Institutions assess the risk levels of customers, transactions, products, and services they offer. This involves identifying which customers or transactions are more likely to be involved in online scamming.
High-risk customers (e.g., those from countries with poor AML controls) may be subject to stricter monitoring or rejected.
Record Keeping
AML regulations require institutions to keep records of customer information, transactions, and reports for a specified period (often 5–7 years). This helps authorities investigate and trace the flow of illicit funds if needed.
Training and Awareness
Staff members need regular training on AML policies and procedures. This ensures that they are aware of the signs of money laundering and know how to respond appropriately.
Internal Controls and Governance
Organizations must have a robust internal AML program in place, which includes policies, procedures, and clear governance. Appointing a compliance officer to oversee the AML program is crucial.
Transaction Monitoring
Financial institutions continuously monitor transactions for unusual or suspicious activity. The systems flag transactions that are inconsistent with a customer’s profile or appear to be structured to evade detection, such as:
Large cash deposits or withdrawals.
International wire transfers to high-risk jurisdictions.
Complex, frequent, or sudden transactions that don’t match a customer’s typical behavior.
Suspicious Activity Reporting (SAR): When suspicious transactions are detected, a Suspicious Activity Report (SAR) must be filed with the relevant authorities, such as the Financial Crimes Enforcement Network (FinCEN) in the U.S.
Regulatory Reporting
Institutions are required to submit regular reports to regulatory bodies regarding suspicious activities, large cash transactions, or any violations of AML laws. This includes:
Currency Transaction Reports (CTR): For large transactions above a certain threshold (e.g., $10,000).
SARs: For any activity suspected of being linked to money laundering.
Ongoing Monitoring
Institutions need to monitor their relationships with customers continuously. As circumstances or behaviors change, the risk level of a customer or transaction might change, requiring further action.