Anti Money Laundry (AML)
Type: The anti money laundry regulations are locally determined but almost always based on the FATF recommendations
Based on: USA PATRIOT
Target: All organizations world wide
Goal: Limit the inflow of non taxed money into the financial system
Examples of these recommendations are:
- Countries should identify and understand the money laundering and terrorist financing risks.
- Countries should have mechanisms in place that ensure a close collaboration between policy makers, law enforcement authorities, financial intelligence unit, supervisors and other relavant parties.
- Countries should implement sanctions to comply with the United Nations Security Counsil resolutions to prevent terrorism financing.
- Countries should have adequate measures in place to avoid abuse of non-profit organizations for terrorist financing.
- Financial institutions should have a recognizing system in place for Politically Exposed Persons (PEP) (including close family and associates) and must be able to determine their source of wealth and source of funds.
- Countries should make sure that financial institutions include the accurate originator and benificiary information on wire transfers and related messages.
- Countries should assure that there is adequate information of the beneficial ownership of a company.
- Financial institutions should have a process in place to determine if a person acting on behalf of a company is so authorized and should identify and verify the identity of this person.
Full text of the USA Patriot Act
International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation - the FATF Recommendations
Anti Money Laundry Directive (EU) 2015/849 (AMLD)