Understanding AML For High-Risk Countries | HackerNoon

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Understanding AML For High-Risk Countries | HackerNoon
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This guide is an overview on how AML/KYC technology solutions manage money laundering and terrorist financing risks companies face on the international market. - aml kyc

Money laundering and terrorist financing are significant threats to the global financial community. To fight back, countries are continuously enhancing their anti-money laundering and counter-terrorist financing laws. This type of legislation, in particular, provides a regulatory framework that businesses must operate within to conduct business safely.

The list that most businesses follow comes from the Financial Action Task Force . This is a comprehensive list of countries considered as having deficient AML/CFT regulations, which are updated three times per year. The FATF also works closely with high-risk countries to bolster their AML strategies and improve their risk rating.

“Greylisted” countries are under close scrutiny by the FATF while demonstrating a willingness to resolve their AML/CFT deficiencies. The FATF frequently re-evaluates jurisdictions to gauge how their risk profile has changed, so countries are regularly added to and removed from the “greylist.”Here's Why These Measurements Matter For Your Business

When entering a new region, your company should always take the appropriate steps to identify and assess the money laundering and terrorist financing risks present. This single proactive step can save you a lot of time, money, and headaches.

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