Anti-money laundering and sanctions regulatory compliance

In a rapidly changing regulatory environment, Anti-Money Laundering (AML) and Sanctions regulatory compliance have been a focus area of attention for regulators worldwide. In recent years, the local AML regulatory environment has developed rapidly and is increasingly aligned with international AML standards and practices. Regulated institutions need to keep abreast with the regulatory requirements and environment, in order to adapt and respond to any known and/or anticipated regulatory changes. In addition, a money laundering risk management program should be developed and deployed so that AML risk exposures can be managed in an effective and sustainable manner.

Whether through the development of governance related to the AML and Sanctions regulatory compliance framework based on more stringent regulatory standards and expectations, or the use of enhanced system capabilities, regulated institutions need to be strategic when they consider how to effectively utilizing resources to ensure AML and Sanctions regulatory compliance.

KPMG is recognized as a global leader in the AML and Sanctions regulatory compliance space, with proven methods, technology and training support. Our extensive experience working with local, regional and international clients enables us to offer a wide range of services that are risk-based and customized. In respect of any matters related to AML and Sanction regulatory compliance, we can assist with the design and implementation of target management and operating models, help with remediation and rectification of known issues, conduct system model validation, or provide training to cultivate an AML compliance culture. 

• AML audit and AML self-assessment: Conduct a comprehensive review against domestic and/or international regulatory requirements and common practice noted in the industry. Areas of review include governance, systems, processes and control mechanisms, system settings, and effectiveness in the implementation. Recommendations will be made for any deficiencies and gaps identified.
• Institutional money laundering risk assessment: Establish a detailed money laundering risks assessment framework, including the design of questionnaires to assess inherent risks and control effectiveness, the allocation of risk weightings used, and the determination of the applicable risk indicators.
• AML system development, enhancement and/or validation: Based on the findings of regulatory inspections and/or internal audits, develop rectification plan(s) and action items to enhance the effectiveness of the AML controls and processes through the refining of policies and procedures, redesign of systems and data governance mechanisms. In addition, validation of the AML systems can be performed.
• Fine-tuning and/or validation of suspicious transactions monitoring model: Test, fine-tune and/or validate the design effectiveness and/or operating effectiveness of the transaction monitoring rules, parameters and/or thresholds applied to identify large transactions and/or suspicious transactions.
• Name screening system testing: Assess the effectiveness of the name screening system, including list management, application of screening logic and rules. Provide recommendations where areas of improvement are noted.
• Due diligence related to AML and sanctions: Perform due diligence in respect of any pre and/or post securities listing or other activities related to merger and acquisitions activities. The objective is to identify and assess the potential money laundering and sanctions risks arising from the company in question.