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Mar29 - 22

Common Types of AML Breaches 

For money-service businesses throughout the country, maintaining AML compliance is a critical part of business operations and meeting federal regulations. At Bates Group, we know that all too often, AML breaches occur as a result of a business’s ignorance, not its intent. Consider the following about common types of AML breaches and how our team can help your company avoid an AML breach and achieve AML compliance. 

What Is AML?

Standing for anti-money laundering, AML compliance refers to a set of requirements that derive from the Bank Secrecy Act, or BSA. The BSA is designed to prevent money laundering and other financial crimes, including terrorist financing. Under the BSA, money-service businesses are required to create and implement AML compliance plans that meet certain regulations. A breach of these plans can lead to an AML compliance violation, and, in the worst of cases, criminal charges for financial crimes. 

Common Types of AML Breaches

There are various ways in which an AML compliance breach can occur. Some of the most common include: 

  • Information sharing requirement violations. Financial institutions are required to comply with information sharing requirements between themselves and law enforcement and government agencies. Failure to comply could result in penalties. 
  • Inadequate system of controls. A robust and compliant AML compliance program will include implementing a system of internal controls to identify risks, identify suspicious activity, and take action to respond. 
  • Violation of due diligence requirements. There are various due diligence requirements that must be included in an AML compliance program, including things such as customer identification and verification, beneficial ownership identification and verification, and understanding the nature and purpose of the customer, amongst others. Failure to perform due diligence can lead to penalties. 
  • Failure to have a written BSA/AML compliance program. BSA/AML compliance programs must be in writing and approved by a senior manager. 

Again, the above list just scratches the surface of potential AML breaches. If you are worried about your business’s non-compliance, you should reach out to an AML compliance professional as soon as possible. 

How Bates Group Can Help

At Bates Group, our AML compliance consultants specialize in helping money-service businesses like yours achieve AML compliance and avoid AML/BSA breaches and related penalties. We have years of experience and perform trusted, quality work that includes independent review services. To learn more about what to expect when you choose Bates Group for AML compliance services and how our compliance team can help, reach out to us today by phone or online at your convenience. 




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