Top 5 Worrying Trends for High Risk Businesses

Top 5 Worrying Trends for High Risk Businesses

In Anti-Money Laundering, Business by Parvesh ShamdasaniLeave a Comment

Whether due to a lack of effective government policy, or a lack of will from the high risk industries themselves, there are many worrying trends among high risk businesses. Here are my top Top 5 Worrying Trends that I have noticed in the market as of late.

  1. Many companies are still not using computer software
    This is very worrying and more prominent among money exchanges and gold companies. This makes it harder to recall information in an organised and efficient manner, more difficult to follow government guidelines, and easier to ‘manipulate’ the accounts of the company.
  1. Many companies are focusing too much on one aspect (KYC/Documents)
    The higher up the business pyramid a company is, the more compliance aspects that is needed to be applied, and to a greater degree. Only focusing on one aspect is like a man trying to run with one leg. Don’t forget other parts such as policy creation/updating, customer profiling, risk rating, screening/on-going screening, on-going monitoring, staff training, and record up-dating just to name a few.
  1. Outsourcing of Compliance Officer role
    This has legal implications and is actually impractical due to the responsibilities of a compliance officer. Being a compliance officer is like taking care of a baby. 1 baby is okay, 2 babies are enough, 3 babies are too many. Nurturing 40 babies in different locations are unrealistic.
  1. Companies who do not have an effective and complete compliance program are getting AML audit certificates
    When you come across an AML compliance certificate, make sure you read the certificate to see what it covers (whether its coverage is extremely basic or advanced). Also do some research on the audit company to check if they are reputable and knowledgeable.
  1. Some companies are running a compliance program without proper understanding
    If you don’t understand what you are doing, hire people who do or get some help. Otherwise it could end up costing your company like how Donald Trump is damaging his own country.

Business and compliance enthusiast, problem solver, road warrior, police ID check magnet, and half geek whose exploits have taken him around the United States, United Kingdom, Caribbean, India, deep into Southeast Asia and West Africa. Entered the anti-money laundering and high risk field to help develop understanding, contribute research, improve standards, prevent profiteering at the expensive of SMEs, and to protect interests of the average person.
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