Anti-money laundering (AML) and trade sanctions

Firms are facing intense pressure from increasing regulation and investigations by international and local authorities, prompting extensive reviews, audits and litigation.

Whether dealing with an urgent issue or addressing compliance more broadly, organizations need to have comprehensive programs in place to address their risks of non-compliance with local and international laws, rules and regulations and internal company policies and procedures.

KPMG has assessed AML and combating the financing of terrorism (CFT) procedures. Our team combines local and international experience and knowledge and comprises a group of professionals who possess a unique combination of skills and competences pertinent to AML, CFT, sanctions and compliance. Whether assisting a financial institution proactively seeking to improve its program or reactively responding to a regulatory order, we provide assistance to address many areas of AML/CFT program improvement sought by the financial community in today’s marketplace.

Maintain regulatory and public confidence and protect your brand through robust AML governance

The ever-increasing burden of AML, CFT and sanctions regulation, coupled with the severe fines imposed on non-compliant financial institutions, is driving improved AML/CFT programs, systems and controls.

The failings of global financial institutions in the area of regulatory compliance and terrorist attacks have driven AML and CFT to the top of regulators’ agendas, providing greater challenges for regulated firms.

Financial institutions have found themselves at the forefront of the fight against financial crime, with demands for rising investment in technology and regulatory compliance at a time when they are undertaking significant cost-cutting costs. It is imperative for their continued success in a highly competitive market that they adopt a risk-based approach and achieve optimum balance between risk and compliance cost.

Estimates suggest that between 2% and 5% of global GDP is laundered every year, which, using 2014 statistics, would be between US$1.5 trillion and US$4 trillion.

Driven by a growing political determination to combat organized crime, governments, law enforcement and regulators across the world have increased their scrutiny of AML/CFT processes and controls, taking direct action against individuals and firms who fail to comply with minimum standards.

In addition to the challenge of managing the immediate interaction with local, regional and international authorities, increased scrutiny is also exposing weaknesses in firms’ underlying infrastructure (documentation, systems, controls and resources). A risk-based approach is not only expected, but makes good commercial sense.