To determine whether your company should implement AML (Prevention of Money Laundering) and CFT (Combating the Financing of Terrorism) tracking processes, it is essential to evaluate the following criteria:
Sector of Activity
Companies required to conduct AML traces belong to the following sectors:
- Financial Institutions
- Banks
- Insurers
- Exchange Houses
- Investment funds and pension funds
- Non-bank financial services professionals and companies (foreign exchange brokers, remittance companies, payment institutions, non-bank credit companies, crowdfunding platforms).
- Real Estate Sector
- Real estate agents in purchase and sale transactions.
- Construction and real estate companies in purchase and sale transactions.
- Trade in High Value Goods
- Dealers in gold, diamonds and other precious metals or stones.
- Antique and art stores.
- Retailers of luxury goods, such as automobiles, watches or jewelry.
- Trust and Corporate Service Providers (Trusts and Partnerships)
- Companies that manage trusts or trust funds.
- Providers of company incorporation services.
- Offices that manage assets and wealth of third parties.
- Gaming and Lotteries Sector
- Casinos (on-site and online).
- Bookmakers and lotteries.
- Lawyers, Accountants and Consultants
- Professionals who facilitate financial transactions on behalf of their clients, such as buying/selling real estate or businesses, managing bank accounts or assets.
- Non-Governmental Organizations (NGO's) and Non-Profit Entities
- Those that move large sums of money, due to the risk of being used as a front for illicit activities.
- Digital Service Providers and Platforms
- Cryptocurrency exchanges.
- Digital wallets (e-wallets).
- Companies that facilitate digital payments.
- Cash in transit and warehousing
- Companies that transport or store large amounts of money or valuable goods.
- Other Specific Sectors (According to Local Legislation)
- Factoring companies.
- Credit unions.
- Peer-to-peer lending platforms.
- Government Agencies (According to Local Legislation)
- Public prosecutors' offices, notaries, social protection, public companies and regulators.
Regulatory Requirements
It is essential to review local laws and sectoral regulations. In countries such as Brazil, for example, the Central Bank (BACEN), the Securities and Exchange Commission (CVM) and the Financial Activities Control Council (COAF) have specific rules for institutions required to implement AML policies.
International regulations, such as the USA PATRIOT Act or the European Union's AML regulations, may also apply to companies with global operations.
3. Nature of Customers
If your company handles high-risk clients, such as politically exposed persons (PEPs or PPEs), individuals in conflict areas or countries under sanctions, it is advisable to perform due diligence and due diligence.
4. Transaction Volume and Cash
Companies with large transaction volumes or that operate with cash, such as gas stations or lotteries, are more vulnerable to money laundering.
5. Contracts and Business Partners
Partners or investors may require assurances of AML compliance before entering into business deals, especially in international contracts or contracts with large institutions.
6. Reputation and Operational Risk
Implementing AML traces protects your company from reputational risks, administrative or criminal sanctions.
7. Consulting and External Audit
If, after evaluating these criteria, your company identifies the need to implement AML procedures, it is advisable to look for specialized solutions such as the AMLTool by PetroShore.
AMLTool: Integral Solution
- Biometric triage by image: Reduces errors and false positives to 0%, increasing accuracy.
- Access to extensive databases: More than 1,300 watch lists and global coverage.
- Continuous monitoring: Automatic updates of risk levels.
- Simplified reporting: Tools for customized audits.
- API REST integration: Adaptable to specific needs.
Implement the AMLTool ensures regulatory compliance and protects your company from legal and reputational risks.
