Are you hesitant to send money internationally due to the increasing money laundering frauds?
Global money transfer has gained significant importance with the increase in migration patterns. Many people send money to their loved ones back in their home country through different methods. However, the process is often exploited by fraudsters through money laundering. It often makes an ordinary person cautious and doubtful about choosing a suitable medium for an international money transfer.
What is money laundering?
Making unlawfully obtained money, also known as dirty money, look legitimate is known as money laundering. The dirty money is incorporated into the official financial system to conceal its true source. Money transfers to many banks, institutions, and accounts are frequently used to shift dirty money around and cause confusion. To evade suspicion, money launderers deposit cash in small amounts or smuggle money into foreign nations.
The dirty money seems clean and thus is blended into the legal financial system as a result of these many transactions. Criminals can utilise the money laundered from legitimate accounts to fund criminal organisations, narcotics trafficking, human smuggling, and terrorist acts.
What is the Perfect Solution for Money Laundering Problems?
AML refers to a system of rules, laws, and processes designed to prevent and control fraudsters from disguising fraudulent funds as legitimate revenue. Banks and other financial institutions benefit from anti-money laundering compliance programs.
Anti-money laundering compliance program
An anti-money laundering compliance program consists of policies that incorporate everything a corporation undertakes to comply with the law, including internal operations, user-processing procedures, account monitoring, detection, and reporting of illegal money laundering activities. An anti-money laundering program aims to ensure safety and completely eradicate terrorist financing, money laundering, and fraud threats.
How are AML Compliance Programs Beneficial?
Banks and other financial institutions must develop an efficient anti-money laundering compliance program that complies with regulatory standards and proactively handles money laundering risks. Failures in the AML compliance program may result in regulatory penalties for institutions.
All measures and directions used to guarantee safety are included in AML compliance procedures. Some critical aspects of an efficient AML compliance program for safe money transfers are listed below.
Identity Verification
Identity verification is an integral feature of risk-based AML compliance. Financial institutions should verify who they are working with and confirm that they are who they claim to be.
Customer due diligence practices and enhanced due diligence (EDD) measures for higher-risk clients should be prioritised in an AML compliance program. The following is a list of general information that has to be gathered.
- Personal information like full name, residential address, date of birth, and specimen signature.
- Beneficial ownership
- Nature of business
Transaction Monitoring
Customer transactions must always be examined for unusual behaviour risk profiles. Regular monitoring of transactions would detect the following aspects.
- Transactions that exceed regulatory limits
- Unusual transaction patterns
- Transactions involving unusually huge sums of money
- Transactions to nations that pose a high risk
- Customer-related negative media stories
Suspicious activity reports
AML compliance programs entail registering a suspicious activity report with financial authorities in case of speculated money laundering. The SAR submission procedure is simple and includes feedback from senior management.
The safest and most secure way to send money home
To completely distance yourself from any sort of fraud or crime, it is essential to switch towards more personalised and secured methods. ACE Money Transfer offers the best international money transfer services. It has strong AML policies along with the cheapest service charges that make sending remittances convenient and feasible for anyone. ACE Money Transfer has been around since 2002, and millions of loyal users worldwide feel safe and secure when they send money abroad with ACE. Now is the time to sign up on ACE to benefit from its lowest transfer fees yet with the best exchange rates, fast transactional speed, 24/7 service, and strict security measures.
