What is AML training?
Money laundering is a well-known term, but, for many, it feels as it belongs only to movies and newspapers articles. However, for several companies, it represents a threat that needs to be fought and prevented daily. Unlike fictional narratives, money laundering is a complex reality that big companies need to be constantly aware of. According to the UN, “The estimated amount of money laundered globally in one year is 2 – 5% of global GDP, or $800 billion – $2 trillion.”
To explain this global issue in simple terms, we can say that money laundering offers a quick solution for criminals to obtain a large sum of money from illegal activities like drug trafficking. Initially, the money is considered dirty because of its criminal source, so the laundering can make it ‘clean’ and legitimate. Also, money laundering often goes hand in hand with corruption, computer fraud schemes, smuggling, illegal arms sales.
Money laundering follows three main stages called placement, layering, and integration. Essentially, the large sum of money is divided and converted with multiple transactions to obfuscate the process and avoid tracking. For example, money coming from an illegal source can be turned into a retail business to cover any trace. Another common method of laundering is often based on money transfer via foreign banks.
This is, of course, the basic knowledge to start tackling the problem, but what is important in a big enterprise is extending this knowledge further and spreading awareness among all the employees. As intuitive as it sounds, anti-money laundering compliance, or AML training, is the best method to explore this articulated topic and prevent it smarter.
Each learner who starts to train anti-money laundering policies and regulations can:
- Help the organization in achieving full compliance faster
- Being able to spot warning signs in advance
- Know how to report when witnessing money laundering
- Implement processes to reduce risks of money laundering
- Support in fostering a compliance culture in the workplace
Who needs anti-money laundering training?
Although all citizens and employees should be trained and made aware of AML, this part of compliance is crucial for companies operating in the financial sector. Being in this business area means dealing with multiple challenges like money laundering, terrorist financing, and transfer of funds regulations.
Organizations worldwide need to comply with various policies, processes, and control systems to prevent money laundering and other criminal activities. No matter the size of the business, providing the workforce with online AML training is an effective way to reduce risks. All managers, compliance officers, and HR leaders should implement and promote professional learning courses to avoid serious bad consequences.
Play it safe
Whether your employees have done mandatory AML training, it’s essential to keep them updated with compliance certificates and aware of specific learning courses.
Remember that, back in 1930, money laundering was only associated to organized crime. Still, it has evolved in different ways and nowadays applies to illegal actions like corruption of public funds, tax evasion, trade of illegal goods, false accounting, and more. Recently, the increasing usage of electronic money (like cryptocurrencies) has added more challenges to this problem.
So, because of its complexity, anti-money laundering laws and regulations are often changed and improved. Therefore, companies should rely on guidelines that follow updates regularly. In order to keep AML training effective, it’s vital to have a strong digital system that supports businesses in the smartest way possible.
An online platform like eloomi can easily solve the challenges of AML compliance training thanks to automation and deadline reminders, among other features. It’s crucial to play safe and not play with fire when it comes to illegal activities linked with crime and potentially to terrorism.
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Having a competent and aware workforce means having the most powerful aid to detect irregularities and misconduct.
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