What happens when you don’t comply with AML/KYC regulations?
February 23, 2022 at 1:42 pm,
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With business operations expanding globally, the risks are greater, and so are the fallouts of non-compliance with AML laws and breaches of financial sanctions. Disciplinary fines, huge penalties, legal/criminal proceedings, sanctioning, and damage to reputation and shareholder confidence are some of the grave consequences.
The financial and criminal dynamics across the world are also changing. Financial crime is becoming more sophisticated and hard to detect. In the wake of the increasing cases of laundering and scams; businesses and financial institutions are adopting a risk-based approach to avoid losses from fraud and penalties. Organisations are using KYC and AML compliance to check financial crimes before they happen. Firms are also scrutinising risk exposure to PEPs and sanctioned governments. The fear of being penalised is a strong motivating factor to maintain ongoing, robust compliance systems.