Anti-Money Laundering and Combating the Funding of Terrorism

Anti-Money Laundering and Combating Funding Terrorism

KPMG’s Risk Consulting AML/CFT team helps you understand how money launderers and the financiers of terrorism exploit vulnerabilities in your firm.

KPMG’s AML/CFT team help clients understand money laundering and terrorism exploitation.

Anti-Money Laundering (“AML”) and Combating the Funding of Terrorism (“CFT”) are financial crimes that threaten the world’s safety, economic stability and the integrity of the global financial system. AML/CFT considerations remain high on the agenda of the jurisdictions we work with.

Increased regulatory scrutiny is driving greater focus in this area, providing additional challenges for subject persons. Malta’s National Risk Assessment (“NRA”) identified that the illegal activities that generate the most proceeds are from local criminal groups, drug trafficking and tax evasion. The NRA also identified sectors, such as banking and corporate service providers, where the inherent risks are higher than in others. The overall Money Laundering and Terrorist Financing (“ML/TF”) risk for Malta was rated as Medium-High. The 4th Anti-Money Laundering Directive (“4AMLD”) was transposed into national law in 2018 and will be amended by the 5th Anti-Money Laundering Directive (“5AMLD”) at least by January 2020. The international community is also already looking at the next updated - 6th Anti-Money Laundering Directive (“6AMLD”) aimed to become effective in December 2020.

Failure to maintain effective AML/CFT systems can result in:

  • the involuntary support of entities with criminal and/or terroristic intent,
  • regulatory intervention resulting in substantial monetary penalties, and,
  • reputational damage.

An organisation’s AML/CFT controls can be easily undermined by a poor culture of compliance. Strong AML culture in an organisation can help prevent shortcomings and help identify issues before they become a concern.

For an organisation to develop a strong AML culture, management buy-in and involvement is critical. Managing ML/TF risks and implementing integrated controls to meet compliance objectives should not be done in isolation. Mitigating such risks also requires that an organisation has a strong, effective, and sustainable AML/CFT framework and that it dedicates the appropriate resources and measures to mitigate the identified risks.

KPMG has extensive experience in assisting subject persons in their AML/CFT journeys, helping turn compliance from a burden into a competitive edge thus enabling greater program agility, effectiveness, efficiency, sustainability, and integration.

Our team is focused on robust, real-world solutions based on our experience in Malta and internationally. We understand that organisations want a manageable, pragmatic framework that works within their business – and is fully compliant with the expectations of the regulator.

Why choose KPMG?

  • KPMG’s Risk Consulting AML/CFT professionals help clients understand how money launderers and the financiers of terrorism could be exploiting vulnerabilities in their organisations.
  • It is therefore critical to have the right team on your side. We work with clients to identify, manage and mitigate their AML/CTF risk exposures in line with legislative requirements and industry best practice.
  • We can help you to understand and address your AML challenges with proven experience, solutions and results. Our AML team can help you meet heightened regulatory expectations and mitigate the risks associated with money laundering.
  • Our team members have extensive AML backgrounds and include Certified Anti-Money Laundering Specialists (CAMS), as well as seasoned professionals, who have worked in a variety of high-risk AML environments.
  • We work closely with different regulators the Financial Intelligence Analysis Unit (‘FIAU’), Malta Financial Services Authority (‘MFSA’) and the Malta Gaming Authority (‘MGA’).
  • We have handled large AML projects for clients locally and internationally and actively assist clients with compliance issues through audits, monitoring, training and ongoing advisory roles.

Bringing you peace of mind

We aim to provide you with outstanding AML/CFT advice and assistance, across a wide range of areas.

Our Services

KPMG Risk Consulting AML team can provide assistance across a broad spectrum of AML/CTF regulatory compliance and risk management services. 

Our services include:

  • designing and building of the Company’s AML/CFT programme; the Company’s Business Risk Assessment (‘BRA’) and Customer Risk Assessment (‘CRA’);
  • providing regular AML on-site compliance reviews and remedial services (which include client file reviews) and highlighting recommendations for improvement;
  • assisting in the drafting of AML/CFT policies and procedures so as to be in line with the local regulations;
  • designing and delivering tailored and focused AML/CFT training programs aimed at various levels of the staff complement within your organisation;
  • responding to regulatory inspections and requests;
  • assisting in the preparation of regulatory returns for submission such as the Risk Evaluation Questionnaire (“REQ”); and
  • providing other CDD and AML Consultancy Services.

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