What Is Financial Crime & Money Laundering?
Any policy within a business should start by defining what the included content covers. The introduction does not need to be extensive. However, it should give anyone referring to the policy sufficient information to understand what the policy relates to.
Example AML Policy Introduction
Financial crime is any kind of criminal conduct relating to money or to financial services or markets, including any offence involving: –
- Fraud or dishonesty; or
- Misconduct in, or misuse of information relating to, a financial market; or
- Handling the proceeds of crime; or
- The financing of terrorism
The Company aims to identify, mitigate and prevent financial crime within its services and activities by implementing policies and procedures that identify, assess, monitor and manage money laundering and any other associated risks.
Money laundering is the term used to describe the process or act of disguising or hiding the original ownership of money that has been obtained through criminal acts such as terrorism, corruption or fraud. Such monies are then moved through legitimate businesses or sources to make it appear ‘clean’.
Do I Need a Policy Statement?
The AML policy statement should define the plans and intentions of the company regarding the policy matter. It describes how the business approaches the subject matter and gives an overview of the controls they have in place.
Example AML Policy Statement
[ABCZ Company] are committed to the highest standard of money laundering and terrorist financing prevention. This includes anti-fraud, anti-corruption and anti-bribery which are covered within their own policy documents. We aim to have adequate and proportionate risk assessment tools specific to financial crime risks.
The company also has a dedicated due diligence program with measures and controls in place to ensure compliance with the current regulations, laws and standards. Our aim is to ensure a continuous practice of monitoring and training for an inclusive approach.
The company understands that it has a responsibility to identify and combat money laundering across a broad spectrum. This includes financial transactions, including possessing, or in any way dealing with, or concealing, the proceeds of any crime. Our organisation operates in a transparent environment with assessment, monitoring and reporting at the core of all business functions. We are dedicated to the prevention of financial crime and continue to improve upon existing measures.