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What is an Anti-Money Laundering (AML) Policy and where do I find information regarding developing a Policy?

April 26, 2017AML anti-money developing laundering policy

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What is an Anti-Money Laundering (AML) Policy and where do I find information regarding developing a Policy?

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Each MSB is required by law to have an effective anti-money laundering (AML) compliance program. An effective anti-money laundering program is one that is reasonably designed to prevent the MSB from being used to facilitate money laundering and the financing of terrorist activities. The federal regulation requiring MSBs to develop and maintain an AML compliance program is contained in 31 CFR103.125. Each program must be commensurate with the risks posed by the location, size, nature and volume of the financial services provided by the MSB. The Department has provided guidance on its website to help you develop your policy. Please note that the document referenced on our website IS NOT a sample policy but a guide only. Office of Foreign Asset Control (OFAC) – NOTE: MSBs must have a policy to follow regarding checking the list of Specially Desigated Nationals as is required by the Patriot Act.