Why do you need an AML Training?

Did you know:

• In one year the estimated amount of money laundered globally is 2 – 5% of global GDP, or $800 billion – $2 trillion in current US dollars.
• 22.0% of the money is laundered in amounts greater than $1.5 million.
• By 2025, the anti-money laundering software market is projected to reach $2.77 billion.
• Anti-money laundering activities recover only 0.1% of criminal funds.
• 69.8% of money launderers had little or no prior criminal history.
• 90 percent of the money laundering goes undetected. (Source: Forbes)
• Suspicious Activity Reports (SARs) lead to the blocking of about 31% of laundered money annually.

Money laundering is serious business, and these statistics from renolon.com indicates just how serious the problem of money laundering is!

What is Money Laundering?

Money laundering is the process of disguising large amounts of money made through illegal sources to appear that it comes from legal sources. A money launderer who makes big bucks selling drugs could make it appear as though that money was derived from a legitimate business.

A common form of money laundering is to break up large amounts of illegal cash into smaller deposits spread across several bank accounts to avoid detection. Other forms of money laundering include trading in commodities, investing in real estate or businesses, and gambling.

How does Money Laundering affect you?

Money laundering has the potential to threaten a country’s national security, national prosperity, international reputation, and financial system says the National Crime Agency (NCA), UK.

The property market is another route exploited by criminals, particularly in London. Money laundered in this country is often the proceeds of crime generated in another country; large financial centers are attractive destinations or transit points for the proceeds of crime.

Large volumes of criminal money flowing through the UK could result in criminal and regulatory penalties being imposed by UK, EU, and US authorities. This could in turn lead to the withdrawal from the UK, or the potential collapse, of major financial institutions, as per the NCA.

Virtually all high-end money laundering schemes, and several cash-based ones, are facilitated by the abuse of legitimate processes and services. Accounting and legal professionals, and estate agents, can be criminally exploited – this is sometimes complicit, sometimes negligent, and sometimes unwitting – and this small minority of people can pose a very significant threat. They can act as intermediaries and use their skills, knowledge, and abilities to draft documentation, disseminate funds, and allow highly complex structures to be created that move and store large amounts of criminal money and conceal ownership effectively, says the NCA.

One of the key challenges is corporate finance’s control and movement and the need to ensure that effective Anti-Money Laundering (AML Framework) procedures and practices are in place. Refusal to accept the risks and your organisation is openly exposed to:

• corporate fraud;
• corruption;
• exploitation from the theft of money and other assets.

How can AML training help you?

You need to comply with national, regional, and international legislative frameworks such as:

• Section 453 of the 2017 Companies Act (Pakistan); and
• UK’s Proceeds of Crime Act (POCA) 2000).

More fundamentally, money that is unknowingly, unwittingly, or (in the case of fraud and corruption) even consciously ‘laundered’ through the organisation could ultimately support, finance, and promote international terrorism and the drugs trade. An effective AML framework is a testament to your organisation position against crime. As global corporate citizens aware of their responsibilities, any international organisation must comprehensively address these concerns and implement policies, procedures, and associated risk assessment mechanisms through AML Training.

To have insufficient controls and be charged with engaging in money laundering can have any of the following negative consequences:

• Damaged corporate reputations & brand devaluation
• Eroding employee morale
• Potential consumer boycotts
• Negative investor perceptions
• Possible legal action
• Fines & potential jail terms for directors

Boost your knowledge and career with an AML training course!

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ABAC® AML training can be applied to all organisations, regardless of their size, nature, or complexity of the activity. ABAC® is designed to assist in developing processes and systems that help your organisation effectively manage compliance risks and foster a system-wide culture of business integrity. Our experts are willing to assist you in the process of obtaining an ABAC® AML credential and developing your career skills.