Risks

• Inadequate AML policies and procedures may lead to fraud, fines and financial losses, loss of reputation and/or regulatory scrutiny.
• Companies failing to meet regulatory standards are subject to large monetary fines.
• Companies failing to meet regulatory standards can lose their licenses and/or be subject to permanent closure.
• The Internal Revenue Service has been delegated authority to examine certain financial institutions, including Money Services Businesses (MSB), to determine compliance with requirements of the Bank Secrecy Act.
• MSB employees, from senior executives to individual agents, are subject to felony convictions, which carry the possibility of prison sentences.

Opportunities

• Achieving AML best practices affords an MSB the ability to operate effectively and efficiently without the risk of outside influences or disruptions from regulatory bodies.
• An MSB can be cast in a positive light to the extent it meets and exceeds regulatory concerns.
• Sound AML practices provides an ethical framework for an MSB’s staff, wherein consequences for violations of policy are clearly defined and thus establish a strong ethical Culture of Compliance.