Annual AML Audit
Over the last 10 years the government has developed and strengthened laws designed to curb money laundering amongst individuals and organizations to improve business practices and prevent terrorist financing through money-laundering programs.
An annual AML audit is just a part of a complete AML program. Any financial institution today is required to conduct an annual AML audit as a part of a policy to fight fraud and illegal transactions. Broker dealers in particular are required by FINRA to conduct an Annual AML audit to review the effectiveness AML procedures and controls.
The AML program was created as a result of the Patriot Act signed in 2001. All financial institutions including broker dealers are required to present an annual AML audit every year. This puts their AML procedures in writing and shows the firms willingness to follow compliance procedures.
Having an annual AML audit is an important factor in creating a public image of business compliance. For best results, the audit should be conducted by an outside firm that specialized in compliance consulting. It is also beneficial to have an outside firm involved because they will know the latest requirements. This will help avoid fines due to negligence or discrepancies in your firm’s numbers.
Since the creation of the AML program and the annual AML audit requirement, large and continuous changes have been applied to compliance. The evolution of the rules and laws that govern the AML policies are constant. Only the experience and knowledge of an AML compliance officer and AML audit professional services will be able to provide accurate information for these annual audits.
There are real risks that can result in not following the annual AML audit procedure. Penalties for non-compliance can range from stiff fines to prosecution depending on how severe the non-compliance. In addition to these consequences, failure to complete an annual AML audit runs the risk of sullying the reputation of your firm and put your company at serious financial risk. For best practices in risk management, you should conduct an annual AML audit, whether specifically required or not.
Now more than ever, investors want a secure economy, we have to comply with the AML program. Making a proper annual AML audit is the first step to creating a safer and more secure economy.
From your firm's public image to your customer and government confidence, an outside firm specializing in annual AML audits, will supply you with all the tools you need for better efficiency under these regulations.
If you want more information about the AML audit, you can fill out the form on the right side of this page. A professional will contact you regarding your complimentary consultation.
