• Building Societies and Credit Unions

    Some services provided by building societies and credit unions are attractive to criminals wanting to launder the proceeds of crime and to finance terrorism.

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Building Societies and Credit Unions

What are the ML/TF Risks?

Building Societies and Credit Unions offer a wide range of financial products and services, which are associated with different ML/TF risks. These include, but are not limited to:

  • Retail banking, where banks offer products and services directly to personal and business customers (including legal arrangements), such as current accounts, loans (including mortgages) and savings products;

Examples of ML/TF risk associated with different banking activities include:

  • Provision of services to cash-intensive businesses;
  • Undertaking high-volume of transactions;
  • Undertaking high-value transactions; and
  • The diversity of services offered across locations;

Building societies and credit unions must ensure the organisation conducts a comprehensive ML/TF risk assessment to identify, assess, mitigate and manage ML/TF risk exposures as a critical first step in complying with AML/CFT laws.

What are the AML/CFT obligations?

In developing responses to obligations under AML/CFT laws and regulations the following steps must be undertaken:

  • Conduct a Money Laundering and Terrorism Financing Risk Assessment;
  • Develop an AML Program that is proportionate to ML/TF Risks;
  • Establish effective Board and Senior Management oversight of the AML/CFT Program;
  • Appoint an AML Compliance Officer;
  • Establish a Customer Due Diligence (CDD) Program including collection and verification of know your customer (KYC) information including Enhanced and Ongoing CDD controls;
  • Implement a ML/TF Risk Awareness Training Program for staff;
  • Implement a monitoring program to identify unusual and possibly suspicious customer activity, transactions and behaviour;
  • Establish a process to report suspicions and other activity specified by AML/CFT law and regulation;
  • Establish Record-keeping controls; and
  • Maintain the ML/TF Risk Assessment and the AML Program as the business and risks change.

How can AML Accelerate help?

AML Accelerate, drawing on unparalleled expertise and real-world experience, has developed an AML/CFT Program Manual for building societies and credit unions.

Our solutions deliver all the foundational AML/CFT materials including a ML/TF Risk Assessment, a AML/CFT Program, CDD Standards, and a AML Operating Manual, which you can tailor to your specific needs, ensuring your AML/CFT controls are commensurate with your business.

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