How to launder Anti-Money Laundering Regulations (AML), Counter Terrorism Financing (CTF) - Mustor Management (MIS 10 000), AML DNA, Regulatory DNA, Compliance DNA

AML regulations are designed to create a financial environment hostile to money laundering, major crime and tax evasion. These regulations often include requirements for Counter Terrorism Financing (CTF).

They typically detail requirements for:

customer identification

reporting entities

reporting cross border movements of physical currency and bearer negotiable instruments

transferring funds

registering providers of designated remittance services

developing:

anti-money laundering programs and

counter terrorism financing programs

correspondent banking

countermeasures

record keeping

secrecy and access

offences

auditing

information gathering

enforcement

administration and

vicarious liability.

The AML regulatory system is typically made up of:

	primary legislation
	legally-binding rules and
	non-binding guidelines.

1 Who will be affected by them?

1.1 Who will need to know how to use them?

AML regulations will affect:

	accountants and financial planners
	banks, building societies and credit unions
	bullion dealers
	money exchange services
	casinos
	gambling service providers
	insurance providers
	jewellers
	legal practitioners
	real estate agents
	remittance service providers and
	securities and derivatives dealers.

1.2 Who are the regulatory organisations and what do they do?

There are international, regional and national AML regulators.

Some of the international and regional organisaitons involved include:

	Financial Action Task Force (FATF)
	Egmont Group
	Asia Pacific Group on Money Laundering
	Commonwealth Secretariat
	United Nations Drug Control Program
	Office of Drug Control and Crime Prevention
	International Monetary Fund
	World Customs Organisations
	Caribbean Financial Action Task Force (CFATF) and
	International Money Laundering Information Network (IMoLIN).

Some of the national organisaitons involved are as follows.

Argentina	Unidad de InformaciÓn Financiera
Australia	Australian Transaction Reports and Analysis Centre
Bahamas	Bahamas Financial Intelligence Unit
Belgium	CTIF – CFI (Cellule de Traitement des Informations Financières
Bermuda	BPSFIU
Brazil	lCOAF
Bulgaria	Financial Intelligence Agency
Canada	FINTRAC / CANAFE
Chile	Unidad de Análisis Financiero
Colombia	Unidad de InformaciÓny AnÁlisis Financiero
Cook Islands	Cook Islands Financial Intelligence Unit
Croatia	Ministry of Finance, Anti Money Laundering Department (AMLD)
Cyprus	MOKAS, Unit for Combating Money Laundering
Denmark	SØK / Hvidvasksekretariatet
Estonia	Rahapesu Andmeburoo
France	TRACFIN
Guernsey	Financial Intelligence Service
Indonesia	PPATK
Ireland	The Money Laundering Investigation Unit of the Garda Bureau of Fraud Investigation
Isle of Man	Financial Crime Unit
Israel	Israel Money Laundering prohibition Authority (IMPA)
Italy	UIC (SAR)
Korea	Korea Financial Intelligence Unit , (KoFIU)
Lebanon	Special Investigations Commission (SIC)
Malaysia	Bank Negara Malaysia
Marshall Islands	DFIU
Mauritius	Financial Intelligence Unit (FIU), Mauritius
Netherlands	MOT
New Zealand	NZ Police Financial Intelligence Unit
Panama	UAF
Philippines	AMLC
Poland	General Inspector of Financial Information
Portugal	Unidade de Informação Financeira
Romania	Oficiul Nacional de Prevenire se Combatere a Spalarii Banilor
Singapore	Singapore Suspicious Transaction, Reporting Office, (STRO)
Slovakia	Bureau of Organized Crime of the Police Presidency, Slovak Republic
Slovenia	Office for Money Laundering Prevention (OMLP)
South Africa	Financial Intelligence Centre
Spain	El Servicio Ejecutivo de la Comisión de Prevención del Blanqueo de Capitales e Infracciones Monetarias (SEPBLAC)
Thailand	Financial Intelligence CentreThe Anti
UK	NCIS / ECU
USA	Financial Crimes Enforcement Network (FinCEN)
Vanuatu	FIU – Vanuatu
Venezuela	Superintendencia de Bancos y Otras Instituciones Financieras

For hotlinks to these organisations, click here.

In a nutshell, regulators typically:

	collect, retain, compile, analyse and disseminate information about the movement of money around the country and the world
	provide advice and assistance to their tax departments
	work to ensure that financial service providers and cash dealers identify their customers and so reduce the occurrence of false name bank and other accounts
	monitor and identify money laundering related to serious crime and major tax evasion
	watch for money laundering techniques that seek to avoid the formal reporting and identification requirements of the regulations
	take court action for injunctive remedies to secure compliance with the requirements of the regulations and
	assist in criminal sanctions for non-compliance.

They typically partner with government departments involved:

	crime, corruption and misconduct
	customs
	police
	securities and investments
	security intelligence
	taxation
	unemployment and disability benefits and
	child support.

2 What are the problems and challenges we will face?

Reality one: Anti-Money Laundering (AML) regulations are written in complex confusing language that most people have difficulty understanding and complying with. This includes your staff, suppliers, contractors, lawyers, translators and consultants.

Reality two: There are unnecessary costs for not complying and ‘ignorance’ is no excuse in the eyes of the law.

Reality three: There is a simple system that will help your people ensure:

	they understand what is required
	they can check that they complied and
	they can check that their suppliers, contractors, lawyers, translators and consultants complied.

This system is called Mustor Management and is governed by the MIS 10 000 standard.

At the 2005 International Plain Legal Language Conference in Washington DC , the conference summary speaker Mr Christopher Balmford, described Mustor Management as “the most exciting development in our field at the moment”.

This system will make it easier for your people to:

	negotiate obligations, offers and counter offers
	identify and compare choices
	compare changed clauses with original ones
	compare clauses between documents
	plan, program and cost compliance
	check and audit compliance
	analyse workflow requirements and develop procedures
	prepare flowcharts, procedures, action plans and programs (timelines, Gantt/PERT charts)
	make and review compensation claims
	complete prescribed notices and
	translate requirements into other languages.

Savvy employers can reduce their risks and increase their staff's productivity, by enrolling their staff in the Mustor Management Masterclass. As an alternative, your staff can participate in the AML DNA Masterclass or the How to launder Anti-Money Laundering regulations Masterclass.