AML and KYC compliance services

1. What should be understood by the concept of AML COMPLIANCE?
2. How do AML compliance measures work?
3. What should be understood by the concept of KYC COMPLIANCE?
4. Where are compliance procedures applied?
5. What are the benefits of companies using compliance procedures?
6. How can our company help?

AML and KYC compliance services

Back in 1989 it was created financial activities group (abbreviated as FATF)). Her main task was to develop standards and recommendations to combat money laundering and terrorist financing. In 1990, the European Union adopted the first Anti-Money Laundering Directive. Based on these recommendations and legislation, from the beginning of the 90s, references to the definition of financial monitoring in democratic countries began to appear, and then, over time, the concepts of AML COMPLIANCE and KYC COMPLIANCE were introduced.

         What should be understood by the concept of AML COMPLIANCE?

AML compliance (Anti-Money Laundering) is a certain set of measures and procedures, the main purpose of which is to prevent the use of the financial system for illegally obtained income. That is, the AML compliance policy is aimed primarily at ensuring that criminals cannot freely dispose of funds that they received by violating the law in legal countries.

So, we can say that AML compliance in a bank is an important component for financial monitoring and control in any payment system in the world.

How do AML compliance measures work?

Main stages when implementing AML compliance measures:

• Setting Policy. Financial institutions and organizations must develop and implement internal rules in their activities that comply with AML compliance requirements. Thus, the company's policy defines the processes for identifying, reporting and preventing any manifestations of financial crime.
• Client check (Customer Due Diligence). When carrying out any financial transactions, companies must identify the person and check him for a history of crimes. This may consist of examining a person's personal data, assessing the client's potential risks, and the like.
• Monitoring of ongoing operations. When conducting financial transactions, companies must use specialized software to analyze suspicious transactions. If an illegal transaction is carried out, the payment is blocked by AML compliance.
• Saving documents. Companies must store not only information about financial transactions, but also verification of their customers and employees.
• Reporting. Submission of appropriate reports to financial regulators within the state where the company operates in order to check illegal transactions and criminal activities in general.
• Training. Firms must provide staff training in AML COMPLIANCE. In practice, this means that company employees will better understand their customers, since they will have sufficient information about the risks and signals that may indicate criminal activity and clearly separate fraud from legitimate payments.

Thanks to these basic AML measures, compliance can identify any illegal activities related to the receipt of funds from crime. For example, transferring amounts of funds without confirming their legal origin, using bank accounts to store such funds, creating fictitious companies and organizations.

What should be understood by the concept of KYC COMPLIANCE?

KYC compliance (Know Your Customer) is a procedure for verifying and checking a client of a financial institution when carrying out any transactions. KYC compliance is aimed at collecting data about the client, verifying his personal information, and the origin of his sources of income.

We offer a solution at the level of international standards

The purpose of checking a client's KYC compliance is to determine the potential risks of cooperation with him, as well as the financial institution's compliance with the regulatory requirements of the country's legislation.

It's important! The concepts of AML and KYC compliance should not be equated, since they are completely different. Thus, KYC compliance is a narrower concept and is applied only when checking a person. In turn, AML compliance is a much broader concept, which directly includes measures for KYC compliance and other actions to combat money laundering.

Where are compliance procedures applied?

AML and KYC compliance are an integral part of the financial sector of any legal state in the world, since they are applied in:

• Banks;
• Insurance companies;
• Financial and investment exchanges;
• Payment systems (for example, Apple Pay, PayPal);
• Bookmakers and stock markets;
• other institutions whose activities are related to cash flows.

What are the benefits of companies using compliance procedures?

• Strict adherence to AML procedures and standards minimizes the risk of falling under a small AML COMPLIANCE in a bank and other financial institutions, without stopping the payment process in the company;
• Increasing reputation and trust in a financial institution;
• Reliable protection of clients from fraudulent schemes and actions;
• Lack of application of fines and sanctions by the regulator in the country;
• Verification and identification of your clients;
• Prevention of money laundering and terrorist financing.

It's important! Training of KYC COMPLIANCE and AML COMPLIANCE personnel is a guarantee of effective counteraction and prevention of money laundering obtained by criminal means.

How can our company help? — AML and KYC compliance services

The legal company Jurisprudential LTD provides a wide range of AML and KYC compliance services, including:

• Checking counterparties - for money laundering, establishing dossiers, connections with other companies, presence of open court cases, etc.;
• Assistance in completing compliance in a bank and other financial institutions, which guarantees you the avoidance of adverse consequences, in particular, recognition of the invalidity of economic transactions, the introduction of restrictions, loss of business reputation and minimization of checks by the bank. As well as services for separate training of personnel on AML compliance;
• Providing detailed advice on the application of AML and KYC compliance in practice;
• Carrying out analysis of completed transactions and operations on suspicious activities;
• Development and effective implementation of AML and KYC compliance for business partners.

Consulting from Jurisprudential Ltd - AML and KYC compliance services!