Anti-money laundering (AML) checks are critical for regulated industries—they need systems and procedures in place to perform them. If they don’t, they could face reputational damage, a fine, or at worst a jail sentence.
But the increasing complexity and cost of meeting the ever-evolving anti-money laundering regulations makes it difficult to maintain a watertight AML regime.
Red Flag Alert’s AML checks allow firms to monitor for suspicious behaviour without disrupting their everyday commercial activities.
Fast and easy digital verification
Detect any risk
Demonstrate AML compliance
Using our platform, your business can perform UK and international AML checks easily and quickly.
You email the customer a link to our self-service digital identity verification system. The customer opens it using their own device and follows the simple instructions. They need to have an official document like a passport to hand to do this.
Next, we compare the customer information against the electoral register and credit databases to verify their address and other details. We provide an immediate warning if there are any mismatches.
If the customer is approved you can set up monitoring alerts so you know whenever their risk profile changes. You should also re-check each customer at least once every six months.
If you get audited by the regulator you can instantly produce anti-money laundering records for every customer. You can also show them the data sources you used to prove customer identities.
AML checks help prevent legitimate businesses from supporting criminal activity to launder money. They are a legal requirement for any industry that is regulated by anti-money laundering laws.
Standard AML checks take around 10 minutes to complete and, if there are no complications, a customer can be approved immediately.
Enhanced due diligence can take longer (at least a day) as you have to assess the level of AML risk the client poses to your business.
A basic AML check involves you identifying your client using photographic ID such as a passport or driver’s licence. You then use electronic verification to confirm their identity and their address. You should also re-check existing customers regularly.
Enhanced due diligence involves checking whether the customer is on international PEPs and sanctions lists and taking a risk-based approach to deciding whether to work with them.
AML stands for anti-money laundering. It refers to legislation that requires businesses in certain industries to have systems and procedures in place to check their clients’ identities. If a business detects what it believes is suspicious activity they are required to reject the customer and send a suspicious activity report to the National Crime Agency (NCA).
A company’s anti-money laundering regime is the framework of systems and procedures that companies need to have in place to comply with economic crime legislation.
Know your customer (KYC) procedures form one of these systems. A know your customer check is when you collect information on customers and verify their identities. If you don’t perform adequate know your customer checks, you won’t have adequate anti-money laundering systems.
Certain sectors are more at risk of facilitating money laundering than others. These sectors are subject to anti-money laundering requirements. Examples of these regulated sectors include:
Remain compliant with AML regulations and have a complete audit trail to protect your business and reputation.
Book a demo to Red Flag Alert platform is the cost-effective solution your business needs, today.