Anti-Money Laundering Compliance in New York

Anti-Money Laundering Compliance in New York

Anti-money laundering refers to a wide array of laws, rules, and regulations set at both the federal and state levels that are aimed to prevent, detect, and respond to money laundering crimes. Financial institutions nationwide are required under law to develop anti-money laundering programs and maintain anti-money laundering (AML) compliance. At Bates Group, we provide consulting services for anti-money laundering compliance in New York and nationwide. Call us today for the support your financial institution needs. 

What Are Anti-Money Laundering Laws?

Anti-money laundering laws are primarily derived from the federal Bank Secrecy Act, or BSA. The BSA, which was originally passed in 1970, requires that financial institutions conduct due diligence on customers and report any suspicious transactions. The purpose of the BSA is to prevent money laundering, and it has also expanded with the goal of preventing terrorist-financial activities. Money laundering can refer to a variety of financial crimes, including any crimes aimed at disguising illicit funds as legitimate income. 

Elements of an Anti-Money Laundering Compliance Program

Financial institutions are required to develop and maintain anti-money laundering compliance programs. These compliance programs must adhere to certain requirements set forth by federal law. Some of the required elements of an effective and accordant AML compliance program include:

• The program is approved, in writing, by an AML compliance program manager
• The program must be reasonably designed for the specific firm based on the firm’s risk assessment
• The program must be independently audited and tested
• Ongoing training must be provided to relevant personnel 
• The program must assign an AML Compliance Officer, whose information must be submitted to FINRA
• The program must include a risk-based customer identification program (CIP) 
• The program must include processes for conducting ongoing customer due diligence

Why Work with a Professional AML Compliance Consultant?

All money-service businesses and financial institutions are required to develop and maintain AML compliance programs; the failure to do so can have large consequences. Potential consequences include, amongst other things, regulatory fines and penalties, as well as an institution unknowingly participating in money-laundering activities. There could ultimately be both civil and criminal penalties. 

Developing an AML compliance program is a large undertaking that should only be pursued by an expert in AML compliance and years of experience. When you work with a professional AML compliance consultant, your consultant can help your institution understand its unique positioning and risks and develop an AML compliance program that is specific to its needs. Note that even programs that are developed internally require independent third-party auditing and testing. 

Call Bates Group Today

At Bates Group, our AML compliance specialists are here to help your financial institution meet its AML compliance goals and maintain AML compliance for years to come. For services for anti-money laundering compliance in New York and nationwide that are customized to your institution, call Bates Group today. We have years of experience and a reputation of excellence. Reach out to our team by phone or online to set up your initial consultation and learn more about our services and how we can support your financial institution.