Anti-Money Laundering and its Impact on your Country and Region

Anti-Money Laundering and its Impact on your Country and Region

The Ultimate Goals

Stable Monetary System – Expanding Commercial Environment – Vibrant Economy

The Issues

Considering RiskCALM’s understanding, determined by listening to our customers express how costly in money and manpower, complying with the AML regulation is, it became evident to us that assisting our financial institutions was a necessity. In discussing the cost and manpower with various FIUs and other government agencies and then conflating their issues with the financial institutions, it became clear that an additional module to the RiskCALM₄^® solution would benefit everyone. This solution now allows for the automated communications between all entities, including alerts and automated reports automatically delivered with supporting documentation. While these capabilities within this complex solution was a giant step forward in eliminating so much manual processing, it was also apparent that there was another step that needed to be taken.

Money launderers have developed sophisticated processes, creating circuitous paths to circumvent government regulations and policies. Considering the magnitude of the AML problem and its impact on a country’s reputation, commerce, economy, and financial stability, while having a criminal element continuously morphing how they launder money, money laundering is and will be difficult to eradicate.

The Solution

Having more wins than losses against money laundering will eventually be determined by the quality of risk-based programs and processes by the reporting entities. Understand that a regulation is what is supposed to happen, the application of it is what does happen. Therefore, the impact of the AML regulation will be determined by how well it is implemented. The implementation of risk-based programs and how effective they are is determined by: amount of information, timeliness of reports, research that was done, knowledge and use of trends, changes in dated information, how soon it is acted upon after delivery, etc.

Improving risk-based models within the reporting sector can be assisted by the sharing of information by the reporting entities and the government agencies. If AML program ideas, data, policies, alerts, analytics, suspicious activities and transactions are shared, more thorough risk-based programs will evolve. If they are shared through a network of financial institutions and government agencies, the information and evolution will occur without the criminal’s knowledge or understanding. The evolution of the risk programs will make it more difficult for the criminal mind to change methods. Perhaps eradication is too hopeful, but having them unable to easily circumvent the regulations and deciding to move to a less developed area will make your community, country, and region more stable.

Conclusion

If we see the need for AML regulations as our individual responsibility of the law, we are wise in complying, but if we understand the social impact it has, we are wise and impactful. Our collective investment in our community and our country, helping to create stability, makes it a wise and impactful investment.

Working together, sharing information, building better predictive models, dynamically alerting each other of suspicious activities or transactions, and sharing risk-based ideas and factors, covertly, without the criminal element aware of the evolving progress of reporting entities will cause the criminals to be at a disadvantage, leading to more arrests and confiscations. It would force the criminal element to move on and thereby stabilizing the monetary system, creating an energized commercial environment and a vibrant economy within our communities and countries.

Is RiskCALM₄^® a panacea? With your involvement, ideas, and leadership, it is!

Fighting money laundering and terrorist financing is a part of creating a business friendly environment which is a precursor for lasting economic development. Together we can do something great.

You and RiskCALM₄^®, working together! Ask for a presentation today.