Worldwide Terrorism, Corruption of Government Officials, Human Trafficking, Arms Smuggling and Tax Evasion have made Anti-Money Laundering a pressing international issue in recent years.

The implementation of AML regulation concerns every business and citizen. Insuring your life or house, opening a bank account, buying real estate and even travelling abroad are a few examples of activities that will have your life scrutinised.

By law over 30 industries are required to monitor their customers and report to the government any suspicious activity/transactions.

These industries have been designated by the Financial Action Task Force (FATF) an intergovernmental body whose purpose is the development and promotion of national and international policies to combat money laundering, the financing of terrorism and proliferation of weapons of mass destruction. All Caribbean countries / territories are members of CFATF, the Caribbean division of FATF and has pledged to obey by its rules.

AML/CFT laws require compliance program be designed on a risk based approached.

Still many managers, business owners and board members are challenged to fully understand the scope of this obligation.

Prevention of Money-Laundering concerns every citizen, the entire economy of the Caribbean Region depend on corresponding banks. Most corresponding banks are located in the United States where funds for international transactions transit before reaching their beneficiaries. If an insurance company, a bank, a car dealership or a jeweller transfer dirty money to third-party abroad it jeopardise the corresponding bank relationship.The US government monitors these corresponding banks and can stop them from servicing regional banks if illegal activities are discovered.

When a bank lose its corresponding bank the entire economy of the country is affected. An elderly in need of care cannot receive money from relatives from the UK, importers of foreign products can’t send their payments to buy food, electronics or other product.

Anti-Money Laundering measures are often perceived as an annoyance while they may constitute an opportunity for the country implementing them to reinstate the rule of law. For example these measures reinforce the institutions by curbing corruption of members of government or high-ranking public servant. Citizen are often frustrated, seeing their national treasury being robbed, anti-money laundering measures reduce this type of illegal activity.

During the November 25 and 26 ‘Thriving in a Complex Regulatory Environment‘ conference, ComplianceAid will share with regulated entities how to safeguard your business/institution with proper Risk Based Anti-Money Laundering (AML) measures to include:

  • Overview of the AML 4 Pillars
  • How to truly Know Your Customers (KYC)
  • How to conduct Customer Identification and Customer Due Diligence
  • Identify and verify Beneficial Owners and Politically Exposed Persons (PEP)
  • How to conduct the Customer Risk Rating process Identify High Risk Customers and conduct Enhanced Due Diligence (EDD)

About the Author

Michelle Martin
Michelle Martin - President, ComplianceAid

Ms. Michelle Martin CAMS, ACA is an Anti-Money Laundering Consultant. She is President of ComplianceAid & a Partner at theList.pro.