Money Laundering is a criminal act
through which a large amount of money can be generated from various illegal
ways such as Smuggling, drugs trading, and money generated from any the illegitimate source is considered as dirty money that needs to make it clean by
dint of “Money Laundering” process. Criminals deposit illegal money with
legitimate financial organizations to earn profit from dirty money.
In order to overcome internal money
laundering procedures and abiding acquiescent with important regulatory bodies,
banks, financial institutions, and credit unions must be in need of to hire
Money Laundering Compliance Officer. Our fight is actually to stop financial
crime and money laundering. Government all across the globe made it mandatory
to implement Anti-Money Laundering Compliance programs in their financial
institution as well as it is compulsory to appoint Anti-Money Laundering
Compliance Officer who is responsible and adjudicate the effective
implementation and execution of an Anti-Money Laundering Policy in an
institution.
Who Can be
MLCO?
Money Laundering Compliance Officer
could be any responsible person who conducts the procedure of Anti-Money
Laundering program. They must have a great understanding of Anti-Money
Laundering and Know Your Customer. Addition to that they should know the
regulatory policies also has some important skills and knowledge to put in day
to day job operations. The person must be qualified in a particular field of
studies Like CASM (Certified Anti-Money Laundering Specialist) and 3-5 years of
experience in the same field. A person who has the CASM certificate worked as
Financial Crime Investigation Analyst. Senior Management of the financial
organization appoints the Money Laundering Compliance Officer to control the
financial criminal activities.
What Does
Money Laundering Compliance Officer do? What are the Roles and Duties of MLCO?
As all employees are familiar with
the Money Laundering policies of their company but MLCO is a person who
responsibly oversees and examines the execution and application of this
procedure at an institutional level. MLCO professionally examines the internal
control system of the organization he detects and monitor the money laundering
activities and he reports to the higher authority of the institution. Their
primary job is not to expose to any criminal risk and MLCO must not
accidentally encourage the financial crime.
Roles and
Duties of MLCO
The roles and duties of MLCO are
depicted as hereunder. The roles and responsibilities of MLCO are different in
every country according to their company ordinance laws and regulations.
·
MLCO is the person who liable of Implementing, Monitoring,
Maintaining and Controlling the Anti-Money Laundering program within the
institution.
·
They design and maintain for proper risk assessment framework
for their organization in order to keep their products, services, customers,
clients secure from money laundering related issues and complexities.
·
He is responsible for the reviewing of client risk scoring,
client identification he analyzes the policy of Know Your Customer. MLCO must
analyze and review the information submitted by the clients to business units.
·
He ensures that the information is obtained from the sources
must be consistent a d accurate according to the procedures and it should be
helpful and satisfying the regulatory authorities.
·
He annually reviews the transaction monitoring processes.
·
Helps the higher authorities and regulatory with inquiries
and information obtained from business managers, auditors, and finance manager
accountants.
·
They use their deep investigations, research and reporting to
the suspicious and doubting activities related to terrorist funding, smuggling,
and money laundering.
·
He identifies high risk and encloses it in front of the
management and higher authorities.
·
Monitoring and overseeing the Anti-Money Laundering training
program for other employees.
These are the
responsibilities, roles and duties perform on the behalf of their
organizations. Now let’s have look at the roles of MLRO Money Laundering
Reporting Officer.
It is according to the
UK’s Money Laundering Regulations all business units who are providing
financial services must appoint MLRO Money Laundering Reporting Officer.
Who can be MLRO?
MLRO is an individual who oversees and
monitors the execution Anti-Money Laundering system within the organization. He
must carry out his money laundering duties with persistence, honesty, and
sincerity. No regulatory body appoints the MLRO he is hired on the basis of
certain criteria and his previous experiences. If hiring within the
organization then the MLRO must director level employee who takes the decision
very confidently and implement it assertively.
What are the Roles and Duties of Money Laundering Reporting
Officer?
MLRO is important to the
position of the organization their roles and duties are significantly different
such as MLRO has authority to access the firm’s financial record and data to
overview and make important strategic level decisions to overcome financial
crime and anti-money laundering activities. The duties he has to perform to
reduce serious illegal issues such as civil and criminal activities.
Roles and Duties
The role and
responsibilities of a Money Laundering Reporting Officer are explained by the
Financial Conduct Authority.
·
MLRO has duty perform and to deal with a different kind of
information and knowledge, monitor the suspicious money laundering case and
disclose such fraudulent activities in front of law enforcement.
·
They work according to the practical perspective such things
are involved in designing related procedures and policies, keeping a record of
the relevant set of information and inquiries, Making internal and external
records.
·
MLRO also indulge in reviewing the internal policies, build
professional relationships in order to confirm that money laundering cases are
detected and financial criminal activities are reported to the law.
·
MLRO also participates in advising the senior management
about the exposure of different level of risks related to money laundering and
how to mitigate it.
·
He is the person who must be knowing what information should
be disclosed and when?
·
He must know the customer due to diligence policies in order to
know who their customers are? It is necessary for him to understand customer
business activity patterns and schedule in order to identify whether the
customer is real or involves in any abnormal activities.
So these are the roles and
activities of MLRO and MLCO the duties they perform in order to overcome and
stop financial criminal activities from the country.
