What is AML for Deposit Takers?
For institutions that accept deposits, adhering to Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CTF) regulations is a legal imperative. These rules are designed to prevent financial systems, including deposit transactions, from being exploited by criminals to obscure illegally obtained funds or support unlawful activities.
Deposit takers have the responsibility to conduct specific checks on both existing and potential clients when establishing business relationships and to continue monitoring these relationships. This is crucial to protect your financial services from being misused by individuals engaged in financial crimes.
How to Ensure Deposit Taker Compliance with AML & CTF
While AML regulations can vary by jurisdiction, the core principles generally require deposit takers to thoroughly verify the identities of clients before entering into business relationships. This typically involves the standard Know Your Customer (KYC) and Due Diligence processes.
Additionally, deposit takers are obligated to screen all current and new clients against international Sanctions Lists. These lists encompass individuals, organisations, and governments associated with illegal activities, such as money laundering, terrorism, and other financial crimes.
This critical process, known as Sanction Screening, is pivotal for upholding AML compliance for deposit takers. At ZenDetect, we specialize in automating your Sanction List screening, allowing you to focus on your financial services while we handle your AML compliance needs.
A crucial element of AML compliance in deposit-taking is ongoing monitoring. Often, deposit takers perform Sanction Screening only once, typically at the onset of a business relationship, or sporadically due to the complexity of the process.
With ZenDetect, your Sanction Screening becomes an automated and continuous process. Activate it once, and we'll seamlessly perform Sanction List screening on both new and existing clients. This ensures you achieve 100% AML compliance effortlessly.