Demand for enhanced due diligence services is expected to rise after US firms were warned to ramp up Anti-Money Laundering (AML) protocols and customer due diligence if they are to escape tougher non-compliance penalties…
The Securities and Exchange Commission (SEC) and US Treasury told financial firms at a July ‘Compliance Outreach Program’ conference to prepare for more stringent examinations on anti-money laundering efforts by 2016.
Failures to undertake proper due diligence during AML and other checks – particularly in regions where company information is difficult to obtain – represent a serious mis-perception of risk, they warned.
The US Treasury’s Financial Crimes Enforcement Network (FinCEN) told delegates the minimum customer AML due diligence obligation for banks, broker-dealers, and other financial firms would encompass the identification and verification of customers and the beneficial owners of legal entity customers.
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