Money laundering involves handling money obtained through crime and severely threatens society. The illegal practice allows criminals to continue funding their activities. One of the people associated with AML is the AML analyst – the person responsible for monitoring the processes involved in handling funds. How do you get started with AML compliance? How to get into AML compliance? How to become AML analyst? You will read about it in the article.
What is AML?
If you’re wondering what is AML, here’s a hint – AML is an abbreviation derived from Anti-Money Laundering, a term used to describe all financial organizations’ measures to eliminate money laundering. Anti-Money Laundering (AML) programs are required of obligated institutions by governments worldwide as part of the fight against financial crimes. Comprehensive procedures involve analyzing transactions and detecting those that may be money laundering related.
AML compliance in cryptocurrencies – what does it mean?
AML compliance in cryptocurrency is essential in this sector. With the development of blockchain technology and the growing popularity of the crypto market, regulators around the world have begun to introduce AML regulations to ensure that money from illegal activities does not enter legal circulation and to prevent digital currencies from being used for illicit purposes, such as money laundering, terrorist financing, drug trafficking, or tax evasion. One key figure in combating money laundering is the analyst – you’ll how to get into AML compliance later in this article.
Who is an AML analyst?
To comply with anti-money laundering regulations, AML analysts should be employed in mandatory institutions responsible for checking Anti-Money Laundering compliance. This specialist checks transactions for irregularities related to suspected money laundering. The essence of the job in this position is the prevention of illegality.
Before explaining how to get into AML compliance, we briefly discuss the main tasks of a person employed as an analyst.
Analysis of transactions
An AML analyst analyzes all financial transactions – searching among them for various types of irregularities or suspicious patterns (in the amount, frequency, or source of transactions) that may indicate that money laundering is occurring.
Identity verification
The AML analyst is also involved in verifying the identity of clients, including individuals and financial institutions – both new and existing.
Risk monitoring
The AML analyst’s responsibilities include tracking transaction risk factors and customer data to assess potential money laundering risks.
Reporting
The AML analyst is also responsible for compiling and submitting reports on suspicious transactions. This identifies and prosecutes those responsible for money laundering and prevents future financial crimes.
Cooperation with regulatory authorities
The AML analyst also must cooperate with regulators. This includes sharing data and collaborating with investigations related to money laundering.
The responsibilities of an AML analyst may vary depending on the financial institution where they are employed, as well as local regulatory requirements in the country. So how to get into AML compliance and how to become AML analyst? About this in the next paragraph.
AML analyst – how to become one?
Getting a directional education to start a career as an anti-money laundering (AML) analyst would be best. To work in this industry, it is recommended to have a degree related to finance, economics, law, or other related fields. Practical skills in analyzing financial data, detecting suspicious patterns, and tracking money flow are also essential for the AML analyst position.
How to become an AML analyst? To improve your skills, taking part in training courses is advisable, allowing you to obtain AML-related certifications. As a confirmation of knowledge and skills in anti-money laundering, it can help gain attractive employment. It is also necessary to keep up to date with changing AML-related regulations and tools for detecting irregularities like AML platform by Coinfirm or AML Oracle.
What competencies are sought after in AML analysts?
You already know how to become AML analyst. Whom is the job helping with anti-money laundering? An AML analyst at an obligated institution must understand the financial market and its regulations, as well as be familiar with risk management methods. Among the competencies valued by AML analysts are, first of all, highly developed analytical thinking and risk assessment skills. An employee employed in this position should also be characterized by excellent perceptiveness, meticulousness, and the ability to cooperate. Applicable regulations should carry out the tasks included in the scope of his duties.
