Anti-Money Laundering (AML) Introduction
Iain Hoggarth
15 years: Risk & compliance
Various jurisdictions impose differing rules as to who is affected by money laundering, and who is required to put in place measures to manage this risk. In this video, Iain explains what Anti-Money Laundering is, what regulations are in place, and how these requirements differ across regions.
Various jurisdictions impose differing rules as to who is affected by money laundering, and who is required to put in place measures to manage this risk. In this video, Iain explains what Anti-Money Laundering is, what regulations are in place, and how these requirements differ across regions.
Join now to start learning today
Finance Unlocked is the video learning platform built for finance professionals.
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
Anti-Money Laundering (AML) Introduction
3 mins 2 secs
Anti-money laundering regulation essentially involves firms and other organisations having to identify and prevent handling money and other property derived from criminal activity.
Key learning objectives:
Define Anti-money laundering
Identify AML regulation, and the broader more general ruling today for regulated firms and regions
Explain the penalties if the guidelines are not followed
Book a demo to access
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
What is Anti-Money Laundering?
The processes, rules and laws that seek to prevent the handling, depositing, exchange and any other activity relating to the proceeds of illegal activity.
What are some examples of AML Regulation?
- Bank Secrecy Act - 1970s
- Financial Action Task Force (FATF) - 1989
- European AML Directive – 1994
What are the general requirements for regulated firms?
The UK and the US have broader AML requirements that extend beyond regulated financial firms to other organisations that handle financial transactions. The general requirements are:
- To identify parties, they wish to enter into a relationship with
- Requiring firms to identify the source of deposits, payments and wealth of the parties they deal with. They often do this through a combination of information gathering direct from the customer
- Those Regional AML firms that are considered ‘advanced’ from the perspective of AML controls, must also report suspicious or illegal activity
How are these measures enforced?
The most stringent regimes will do the following:
- Punish firms that engage in illegal activity (intended or not)
- Punish individuals if there is a failure to report or act on suspicion
Each individual country and region has its own requirements, and it’s important to check what they are and make sure you're up to speed with exactly what's required of you and your firm.
Book a demo to access
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
Iain Hoggarth
Related videos
Money Laundering Key Risk Indicators
Regulated institutions have a broad responsibility to comply with all applicable anti-money laundering (AML) and anti terrorist financing legislation. In this video, Iain discusses the areas AML regulation addresses in order to identify criminal activity.
Iain Hoggarth • 13:52
Mitigating Trade-Based Money Laundering
Money laundering and financial crime risk in trade finance is a problem that the industry has struggled to solve. Iain explains the complexity of this issue by explaining what we know, emerging threats and what bank policies exist to address this risk in trade finance.
Iain Hoggarth • 16:58
Introduction to Senior Managers Certification Regime
The latest and strongest form that new accountability regulation takes is the through the Senior Managers Regime, also known as SMR or SMCR. In this video, Roger outlines the basics of SMR; why the rules exist, the restrictions and limitations and who it applies to.
Roger Miles • 12:38
Key Terms and Functions under SMCR
In the previous video, Roger discussed the Senior Managers regime (SMR) of conduct regulation. In this video, Roger focuses on the language used to set out responsibilities under SMR and outlines the numbering system that the Conduct and Prudential regulators use to identify which role carries which responsibility.
Roger Miles • 12:48
Introduction to Market Abuse Regulation
Where rules against market abuse exist, these rules are usually split into two concepts: Insider Dealing and Market Manipulation. In this video, Stephen provides an introductory overview of what market abuse means in the context of the European Union.
Stephen Stokes • 12:56
The Importance of the Compliance Function
In this video, Peter outlines the 10 principles for the compliance function that were set up for banks by the Basel Committee in 2005. After outlining and analyzing these principles, Peter discusses how and why banks failed to follow them closely enough in the lead up to the Global Financial Crisis - and paid a hefty price for it.
Peter Eisenhardt • 07:03
Overview of Key Compliance Topics
In the second video of this series, Peter discuss the list of topics that would represent a good compliance training. He also talks about how banks have had to cope up with new regulations to get their houses in order on their current business. In the end Peter highlights how Covid-19 brought new compliance challenges and what were the key concerns.
Peter Eisenhardt • 09:57
SMCR for Investment Firms
In this video, Stephen briefs us on UK's Senior Managers and Certification Regime, or “SMCR”, He runs through the background and genesis of the new rules, as well as key aspects of the new regimes and the Conduct Rules which now impact most of those working at investment firms. He finishes by speaking briefly about regulatory enforcement actions that the FCA has taken.
Stephen Stokes • 11:51