As months and years go by, we hear more about increasing cases of money laundering. These illegal practices, whether originating locally or offshore, effect other businesses in diverse sectors. Naturally, this means that more regulations are introduced to ensure that any risks of being exposed to such illegal activities are eliminated.
Since money laundering happens through a complex sequence of banking transfers or commercial transactions to make it look like money was obtained legally, two major legislations are in place. AML (Anti-Money Laundering) and CFT (Combating the Financing of Terrorism) aim at leading entities to obtain a richer financial crime insight to be able to operate without any risks.
For instance, in Malta, the Prevention of Money Laundering Act (Cap. 373) prevents businesses from being used to launder the proceeds of financial crime or even being associated with corrupt practices by understanding and addressing the present challenges.
As an example, risk assessments that include analysis of the business activity, countries in which such activities take place, as well as the type of clients, can detect whether an entity is at risk of being exposed to money laundering activities or not. Such ongoing assessments identify new risks and provide solutions to improve the performance by prioritizing risks and making informed decisions.
This is just an example of how a business can operate successfully. Other factors include anti-bribery and corruption policies, internal auditing, KYC procedures, collection of data, research, analytical reporting, jurisdiction risk and consultancy, and so much more! Failure to do so will lead to an organisation’s reputational risk to be at stake.
The team at Fairwinds Management Limited is well-trained and equipped to guide and assist clients to become compliant with global regulations by understanding and addressing their AML challenges to eliminate risks of being exposed to money laundering activities and conduct business in the most efficient way.
More details about our Anti-Money Laundering Advisory Services can be found here. You can also get in touch with our team on firstname.lastname@example.org for further assistance according to the class of licence and modes of business.