What is AML for Banks?
For financial institutions, Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CTF) compliance are essential legal obligations. These regulations are designed to prevent the misuse of financial systems, including transactions, for concealing illegally obtained funds or financing illicit activities.
Banks must perform specific checks on both current and potential clients to establish business relationships and to continuously monitor these relationships. This safeguards your financial operations from being exploited by individuals involved in financial crime.
How to Ensure Bank Compliance with AML & CTF
While specific AML regulations might vary depending on your jurisdiction, the core principles generally require banks to thoroughly verify client identities before establishing a business relationship. This typically involves the customary Know Your Customer (KYC) and Due Diligence procedures.
Furthermore, banks are mandated to screen all existing and new clients against international Sanctions Lists. These lists encompass individuals, organizations, and entities linked to illegal activities such as money laundering, terrorism, and other financial crimes.
This process, known as Sanction Screening, is a critical aspect of ensuring AML compliance for banks. At ZenDetect, we specialize in automating your Sanction List screening, allowing you to focus on your financial operations while we handle your AML compliance needs.
A pivotal aspect of AML compliance in the banking sector is ongoing monitoring. Frequently, banks perform Sanction Screening only once, usually at the beginning of a business relationship, or infrequently due to the complexity of the process.
With ZenDetect, your Sanction Screening becomes an automated and continuous process. Activate it once, and we'll seamlessly perform Sanction List screening on both new and existing clients. This ensures you achieve 100% AML compliance with ease.