Frequently Asked Questions
Below you will find the answers to some frequently asked questions
What is Anti-Money Laundering (AML)
Anti-money laundering (AML), refers to the system, consisting of specific regulations, laws and procedures, developed to assist financial institutions in preventing money laundering and terrorist financing.
Why anti money laundering is important?
Anti-Money Laundering (AML) involves knowing exactly who you are doing business with, identifying where the source of funds originates and determining the identities of all known counterparties and associations. Financial institutions are required to research the backgrounds of any prospective and existing clients to avoid severe reputational and financial penalties levied by regulators.
What should an Anti-Money Laundering Program include?
An Anti-Money Laundering program is designed to assist financial institutions in their fight against money laundering and terrorist financing. In many jurisdictions, government regulations oblige financial institutions to establish such programs. At a minimum, the anti-money laundering program should include:
- Written internal policies, procedures and controls;
- A designated AML compliance officer
- On-going employee training; and
- Independent review to test the program
What is Beneficial Ownership?
Beneficial ownership refers to the ownership or control of a legal entity. Any natural person who owns, directly or indirectly, a shareholding of 25% or more of a legal entity is deemed to be a beneficial owner. The percentage of ownership may be lower in some jurisdictions.
In addition, any natural person with significant control of a legal entity may also be deemed to be a beneficial owner, such as a CEO, trustee etc.