Why AML is important?

Regulatory bodies and reporting/financial institutions are responsible for enforcing AML regulations.

Failure to comply with reporting requirements and other duties can result in heavy fines and legal consequences for both institutions and individuals. These may include intervention of regulators and/or international clearing partners and card associations. These have serious implications for the business continuity service providers in the financial services industry.

AML measures are critically important for several reasons, impacting the financial system, economy, and society at large, including inter alia:

• Protection and maintenance of the integrity and stability of the financial system, by preventing the infiltration of illicit funds and mitigating the risk of large movements of illicit money.

• Combating of crime and terrorism, by disrupting the flow of finances that sustain criminal enterprises.

• Preventing criminals from using illicit gains to outcompete legitimate businesses and ensuring that all financial activities are transparent and taxable.

• Strong AML measures build trust and credibility with customers, local and foreign investors, and regulators – both locally and internationally.

• AML measures align with international standards. This compliance facilitates a good reputation and international cooperation in fighting money laundering and other financial crimes.

• Contributes to the broader goal of promoting good governance and transparency, which are essential for the development and well-being of societies and our economy.

• Helps detect and prevent fraudulent schemes that can harm consumers.