ANTI-MONEY LAUNDERING AND COUNTER TERRORIST FINANCING. AML AND CTF AUDIT

Lithuanian law and the fourth European directive oblige to cooperate with the authorities against money laundering and terrorist financing. The European Commission carries out risk assessment in order to identify and respond to risks affecting the EU internal market. It promotes the adoption of global solutions to respond to these threats at international level. The European Union adopted robust legislation to fight against money laundering and terrorist financing which contributes to those international efforts.

Obligations under European Anti Money Laundering Directive

In June 2018, the EU updated its AML/CFT rules (the 5th Anti-Money Laundering Directive) to improve its response to financial crime.  Under the current European requirements, all financial institutions and FinTech companies must comply with the following obligations:

– identify their money laundering and terrorist financing risks and constantly review them;

– develop appropriate procedures to mitigate those risks;

– identify clients and carry out customer due diligence (CDD);

– report suspicious client activities to the authorities;

– keep records of CDD and suspicious activity reports;

– conduct AML trainings about these obligations among the company staff.

According the law on the Prevention of Money Laundering and Terrorist Financing, Financial institutions  and FinTech companies must have in place the appropriate compliance and audit procedures for internal policies and internal control procedures to ensure compliance with the provisions of the law. The internal control procedures shall be approved by the senior manager or the management body of the financial institutions approving internal control procedures of a similar nature (the board, head of service, etc.). The procedures should describe not only regulation applicable, but in particular implementation at company level.

Anti-money laundering (AML) audits and reviews are one of the best ways to reveal whether your AML systems and control programs are effective, and where it might fall short. Achieving these goals can be a challenge due to the complexities of conducting the audit review itself.

Anti-Money Laundering (AML) and Counter Terrorist Financing (CTF) audit for finance institutions 

ECOVIS performs AML / CTF audits for finance institutions. Audit reports include:

– compliance of Anti Money Laundering / Counter Terrorist Financing policies and procedures to key legal requirements and best practises;

– comparison of existing company documentation versus documentation required by AML / CTF requirements;

– risk mitigation guidance.

ECOVIS provides an independent audit and testing of Anti-Money Laundering Systems, Programs and Procedures designed for financial and non-financial institutions. Our experience and consultative approach in AML and generally in finance industry ensures high level of precision and expertise.

More about FinTech licensing – www.ecovis.lt/fintech

More about ECOVIS experience – https://ecovis.lt/fintech/why-lithuania/

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