The causes and methods of terrorism are unquestionably complex and multi-dimensional, as are the means of laundering illicitly sourced money. By identifying ML and FT Typologies and assessing global industry trends, one can structure impactful methods of countering these crimes.

As you might recall from our previous Introduction to AML and CFT Compliance Programmes blog, Money Laundering (“ML”) is the process of taking money that was made illegally and making it appear legal. Similarly, the Financing of Terrorism (“FT”) is another financial crime involving the collection or provision of funds for terrorist purposes. To combat these, countering the financing of terrorism (“CFT”) and Anti Money Laundering (“AML”) methods work to prevent terrorist organisations from acquiring funding to carry out their aims.

In AML/CFT, the term ‘typologies’ refers to the diverse techniques used to launder money or finance terrorism. Criminals indulging in these practices often develop obscure methods to launder money and finance terrorism. Identifying key typologies thus becomes imperative to combat the crimes and serves as a helpful way for an AML/CFT compliance professional to build a set of indicators or red flags to keep your eyes out on performing their compliance obligations.

There are tools and steps that can be utilised to prevent Money Laundering; These tools come in the form of anti-money laundering (or “AML”) policies. AML policies and tools work to strategically counter money laundering by preventing criminals from disguising these illegally obtained funds as legitimate ones. Money laundering has adverse consequences on society as it often facilitates corruption, crime and other illegal activities at the expense of a country’s development.

The objective of an effective AML Compliance Programme is to mitigate financial risks for your organisation. So, to help you get started, we have put together a guide of what you need to consider when implementing an AML Compliance Programme in your organisation.

For the uninitiated, money laundering is the process of making the proceeds of criminal activity appear to have been legally obtained. Simply put – it takes money that was made illegally and makes it appear legal. It is important to acquaint a business with the implications of money laundering as this financial crime negatively impacts society, as well as legitimate business interests by allowing harmful criminal activity to thrive.

The Anti-Money Laundering and Counter Financing of Terrorism Act 2009 (AML/CFT Act) is designed to prevent criminals from using banks, financial institutions, and other businesses to hide their ill-gotten gains. The purpose of the Act is to stop criminals from using the financial system for criminal activity, such as drug trafficking and money laundering. In this article, we’ll look at the rules you need to follow and the measures you need to put in place to achieve compliance with these rules.