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1. AML Compliance: What You Should Know
AML compliance includes processes, policies, and training. Financial Institutions
(FI) have invested heavily in Compliance, but each year they've been careful to
ensure that FIs covered other risk functions and reputational risks
ML (Money Laundering) seeks to conceal the profits of crime, ranging from
"minor" tax evasion to large-scale drug trafficking, public corruption, and the
financing of groups designated as terrorist organizations.
A widely used term in the Financial Services industry is "AML" (Anti Money
Laundering), but it encompasses multiple aspects, from the data used to the
systems that process it. AML compliance includes processes, policies, and
training.
The Top Level View
AML is a framework of laws, regulations, policies, and procedures that uncover
efforts to disguise illicit funds as legitimate income.
In 2020, a United Nations panel estimated annual money laundering flows at USD
1.6 trillion, which accounts for approximately 2.7% of global GDP. Over the last
decade, the fight against Money Laundering (ML) has evolved from its original
regulatory scope to a broader range of goals, including social and political
responsibility and touching upon sensitive subjects such as the environment.
It's Just Risky Business
Financial Institutions consistently invest in Compliance, as well as in other risk
functions, but this does not seem to significantly abate Money Laundering activity

2. across the Globe. At any rate, ML affects economic development, particularly in
developing financial centers that lack adequate controls.
It could be argued that developing markets can’t afford to be selective about the
sources of capital they try to attract and secure, but not acting upon ML just
reinforces the roots of organized crime wherever it tries to settle. ML
infiltrates FIs, enables the acquisition and control of key institutions and large
sectors of a country’s economy, which has a direct and negative impact on their
underlying societies.
Taking A Different Approach
Traditionally, anti-money laundering investigations targeted the reporting of
complex transactional networks and the investigation of suspicious customer
behavior. However, new views aim towards targeting the bloodline of organized
crime. Instead of following the money, efforts should proactively put the
crosshairs on the funds fuelling the predicate crimes associated with ML.
Improved efforts can accomplish that through enhanced systems and data-driven
procedures. The insights gained by utilizing powerful tools, such as Lucinity’s
platform, can be shared in a progressively closer and more collaborative
environment formed by Regulatory bodies, Financial Institutions, law
enforcement, and technology providers.
Please Visit: https://www.lucinity.com/blog/aml-compliance-what-you-should-
know