A business will know that background checks are needed when hiring new people, but some may not have heard of Anti-Money Laundering (AML) Checks and why a business needs them.
Although not every company requires AML Checks, verifying whether this is the case can be worthwhile. Businesses must be proactive when protecting themselves against money laundering and fraud. AML Checks are the perfect way to achieve this.
Why are AML Checks Required?
If a business deals with some form of finance or investment, then an AML Check will be needed for customers wishing to invest. An AML Check is a background check that verifies a person’s identity and ensures that any investment made is genuine using reputable funds.
What Do AML Checks Consist Of?
Although not all AML Checks are the same, there are some basic principles that each business should follow to ensure it is protected from fraud and money laundering. The following is an example of some of the checks that can be made regarding anti-money laundering.
Verification of Identification
To ensure a person is who they say they are, a business will need to see evidence of this and ensure that the documentation given is authentic. Photographic identification must be a passport or driving license, and there will be instances when an address history is requested.
Ensuring the documents you receive are genuine can ensure there is no danger of money laundering and stops any nefarious applicants in their tracks.
Document verification can be done online, and users can benefit from advanced biometrics that can spot the smallest flaws in fake documentation or mismatched information.
Customers dealing with businesses regarding investments and financial transactions will often undergo a credit check, but credit checks are used for more than viewing an applicant’s financial background.
Credit checks will also allow businesses to ensure the information given via documentation matches their credit records, allowing businesses to have more confidence that relevant checks are being made regarding money laundering.
DBS Checks are completed by the Disclosure and Barring Service and help businesses establish whether a person has criminal convictions or not. There are three levels of DBS Checks which are as follows:
- Basic DBS Check
- Standard DBS Check
- Enhanced DBS Check
Which DBS Check is used can depend on the relationship between a customer and a business, but Enhanced DBS Checks provide the most information regarding spent and unspent convictions, plus any information held on the Police Computer.
Making Sure AML Check Are Carried Out Frequently
The subject of money laundering can be concerning for some businesses, but if the right checks are in place, then there is little need to be alarmed. Those wishing to carry out money laundering will search for companies who are failing to screen applicants or carrying out the right security protocols.
A business that takes advantage of professional background screening companies can be confident that AML regulations are met, and customers are protected.