Ashish Bhandari Discusses Anti-Money Laundering Rules: Challenges & Requirements | Omega Underground

1. Risk-based Approach -

To prevent money laundering, companies should incorporate a risk-based approach, where they keep their focus on business areas where there is a higher risk of money laundering and terrorist financing. Also, the DFSA noticed that there is a standardized template to perform duties, which does not fit the character of the company’s business model.

2. Insufficient Risk Assessment -

Based upon the type of customers, products, and the geographical locations in which the companies operate, the management should assess and identify the risks. In the case of not having a complete understanding of all types of risks, the company holds the possibility of not having clarity on how to take action and prevent money laundering.

3. Ambiguous Policies -

In most cases, the DFSA noticed that the policies were too vague and are not sufficiently operational. This makes it difficult for the companies to implement policies and make wrong decisions about the organization of policies — e.g. which procedures to adopt.

4. Undetailed Procedures -

Many companies are using general procedures which do not align with the workflow of the company. Without a sufficient foundation and inadequate procedures, the employees are more likely to make mistakes and internal controls become difficult to implement.

5. Insufficient KYC Procedures -

A lack of updating of documents, data, and information about the customers and failure to obtain information about the intended nature of business relationships, are a sign of inadequate KYC procedures.

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Ashish Bhandari, Dubai based, is an ex swiss private banker and was involved in wealth management / portfolio management for ultra high net worth clients.

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Ashish Bhandari Dubai

Ashish Bhandari Dubai

Ashish Bhandari, Dubai based, is an ex swiss private banker and was involved in wealth management / portfolio management for ultra high net worth clients.