Weaknesses remain with AML – Is poor document management creating additional risk?

There has been good news in the fight to enforce Anti-Money Laundering (AML) as compliance rates have been holding steady.

However, there are some cracks beginning to form and these could cause a backslide if concerted efforts are not made to combat the issues early.

Technological solutions might hold the key to keeping AML compliance rates up but only if they are used effectively.

What are the early warning signs of AML non-compliance?

The Institute of Chartered Accountants in England and Wales (ICAEW) have observed overall good rates of compliance with AML but has noticed that non-compliance is beginning to increase.

Given the complexity of financial transactions, it is little wonder that it can be challenging for businesses and firms to stay on top of all of the documents that need to be monitored.

Risk assessment documentation and verification procedures are vital, but can often pose an administrative burden that poses a challenge for those working to maintain AML.

There is a risk that if the administrative challenges persist and increase, that steps may be taken to streamline the process and introduce additional vulnerabilities that could undermine AML procedure.

The ICAEW have cautioned that a lack of regular reviews into the adequacy and effectiveness of policies and procedures may be increasing the risks to AML compliance.

As the Financial Conduct Authority (FCA) expands its scope to increase monitoring of AML compliance, it is time for auditors to empower the businesses they work with to better meet AML needs.

How can technology be used to improve AML compliance standards?

As mentioned, the increasing challenges posed by more complex arrangements could result in AML compliance falling.

The growing need to simplify the process cannot come at the expense of the level of scrutiny that has worked so well to combat fraud and errors.

This means that more businesses and firms could find themselves in need of additional support to keep pace and adopting a smart technological solution can avoid corners being cut.

This is where the innovatively simple design of Glasscubes truly excels, as it provides a secure platform for managing filing requirements.

Auditing teams, accountants and the businesses they work with can rely on Glasscubes to provide a centralised space for important information to be collated without the need for individual logins.

Automatic reminders ensure that documents are returned on time and completed with full transparency about what needs to be done to get tasks across the line.

If AML compliance, or any part of the administrative process holds you back, then it is time to use Glasscubes to make compliance straightforward.

Book a demo to find out how Glasscubes can become an integral part of your AML compliance measures.