What Is An AML Compliance Officer?
In order to oversee internal anti money laundering policies and remain compliant with important regulations, banks, credit unions and similar financial institutions are required to appoint an Anti Money Laundering (AML) Compliance Officer.
As part of the fight against financial crime, governments across the world require their financial institutions to put in place anti money laundering compliance programs. Implementing AML legislation can be challenging: in the United States, for example, the Bank Secrecy Act (BSA), introduced in 1970, has been amended by numerous subsequent laws, including the Patriot Act. Practically, this means US financial institutions must navigate an increasingly complicated BSA compliance landscape, often involving a significant administrative burden and serious legal consequences. To achieve compliance, it is often necessary to appoint an AML Compliance Officer: a principal figure responsible for overseeing the effective development and implementation of their institution’s AML program.
A vitally important role within a financial institution, senior management should consider the following factors when selecting an AML Compliance Officer.