Anti-Money Laundering Checks for Businesses

Posted September 25th, 2017

According to the government, money laundering means “exchanging money or assets that were obtained criminally for money or other assets that are ‘clean.” As a business owner it is vital that you understand the ins and out of money laundering and how it can affect the running of your company.

Being able to recognise money laundering efforts is your responsibility as a business owner. You have to have in place minimum checks for money laundering, controls, checks and procedures to ensure compliance with money laundering regulations. This is even more vital in industries such as the legal and financial sectors.

There are a few responsibilities you have as a business owner when it comes to putting in place anti-money laundering processes to protect your business from being used by criminals looking to ‘cleanse’ their money.

Customer Due Diligence – This process means looking for certain types of information relating to your customer to prove they are who they claim they are. This can include their full name, current address and date of birth. It can also include an identity card with photograph, such as a passport. You can obtain information about a customer through the electoral register and credit reference agencies. If you have any doubts over the legitimacy of a customer you should cease working with them until you can prove their identity.

Customer due diligence should be applied when you are establishing a business relationship with a customer, when you suspect money laundering, have doubts over their identification information, or when circumstances change for an existing customer.

Money Laundering Controls and Monitoring – Your business should have adequate controls in place to monitor and prevent money laundering attempts. If you are aware of a threat, you can put in motion the processes in place and alert the authorities.

Anti-money laundering controls should include having a nominated officer that any suspicious activity is reported directly to. Senior managers and compliance officers should be aware of their responsibilities, especially within larger, complex companies. Training should be conducted on a regular basis, with anti-money laundering processes and procedures updated in official documents whenever an adjustment is made.

Policy Statement for Company as a Whole – This statement should outline the detail involved in your company’s anti-money laundering policy, controls and the procedures put in place to combat potential money laundering efforts. This should include all nominated officers and his or her individual responsibilities.

Record Keeping – Every time you obtain information about a customer as part of due diligence you have to keep an accurate record of that documentation. This record should also include risk assessments carried out, policies, controls and procedures and all training records.

Trainer Bubble has developed a course that teaches those within business the importance of putting in place strict anti-money laundering checks. If you would like to find out more about the course, you can find information on our website, where you can also see a wide range of training courses suitable for e-learning and off-the-shelf corporate training. We look forward to assisting you in providing a platform of knowledge for your employees to efficiently work from.


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