5 tips for avoiding the AML/CFT supervisor taking action against your business

5 tips for avoiding the AML/CFT supervisor taking action against your business

20 SEP 2021

The AML supervisors have recently been busy with fines and warnings and there is more to come. You may regard AML/CFT obligations as a pain in the proverbial backside, but you cannot afford to become complacent. These 5 tips may help avoid AML/CFT supervisor action against your business.

5 tips for avoiding the AML/CFT supervisor taking action against your business

Tip #1: Fix the findings from your last AML/CFT audit

You have paid good money to get your audit completed. A good auditor will identify things not right and provide recommendations on how to fix these. Regard your audit as being cheap consultancy. Take the suggestions and make improvements immediately. Failure to take action on audit findings may signal to an AML supervisor that you are not serious about your compliance obligations.

Tip #2: Get an annual AML health check

The compulsory audit timeframe has now extended to three years. The AML environment is constantly evolving, and much can happen over three years. Strategi Compliance is now offering an annual AML health check. This is like a mini audit and is quick and cost effective. For only $1000 plus GST, we can check your documents, training records and processes to ensure you are still on track – enabling you to make changes to meet regulatory amendments or new guidance from AML supervisors.

Tip #3: Train, train, train

AML/CFT is dynamic, and training of staff, management and directors is key to ensuring compliance. You don’t know what you don’t know – so the way to solve that is to tap into the training resources at Strategi. The special webinar ‘Making sense of AML/CFT changes’ (coming soon) is an ideal place to start. This webinar will pull together all the changes from the last 12 months and provide practical solutions on what needs to occur.

Tip #4: Undertake a meaningful annual review of your documents

Too often, our audit team see examples of reporting entities paying lip service to undertaking a review of the risk assessment and programme. The business signs off stating “A review has been undertaken and no change is required.” Our auditors know what has changed with supervisor guidance, national or sector risk assessments, and regulatory changes. If it is obvious to us that the document review has not been thorough, then it will be equally obvious to any AML/CFT supervisor. Use our annual health check service and our annual AML refresher training as tools to update your documents.

Tip #5: Ensure your ‘controls’ are in place and working

A control is the action you take to ensure that what you say you will do in your AML programme is what actually occurs. An AML programme without controls is simply meaningless words created to ‘tick a box’. You need to bring your AML programme alive and be able to prove that what you say you will do, is what happens. Our AML health check is designed to help identify when your AML programme is not being as effective as it could be.

Let Strategi help you make meaningful change in your business by adopting these 5 tips. For more information, contact us now.