What you need to know about the hidden costs of non-compliance with AML laws.

As a professional or business owner, you’re up against three main risks of AML non-compliance: regulatory, reputational, and operational. In other words, getting in trouble with the law, getting in trouble with your clients (potential and existing) and getting in trouble with your staff.

Beyond that, you also need to be aware of what can happen if you try to comply with AML in a subpar way – like manual and ad-hoc processes or patched together tech. If you’re not following best practice, you could be vulnerable to accidental non-compliance because of things falling through the cracks, human error, staff leaving and forgetting to pass on information, inconsistent record keeping, and failing to be audit-ready.

It’s clear it’s not enough to be AML compliant, you also need to make sure you’re performing your AML responsibilities in a smart and streamlined way. So, before we talk about this smart and streamlined option, let’s get to grips with the real damage of not having the right AML system in place. Failing to comply can hurt your people, your brand, your profits, and your reputation – sometimes so badly it’s impossible to recover. A heads-up before we continue: this article provides general information only and does not constitute legal advice. If you need advice specific to your circumstances under the AML/CTF Act, please consult your compliance officer or legal adviser.

Risk one is regulatory – falling foul of the law

• You need to know the Department of Internal Affairs takes non-compliance seriously
• If you don’t comply you risk fines (a maximum of $5 million for firms/body corporates)
• You also risk imprisonment
• You could be up against increased regulatory scrutiny
• You might have to hire expensive legal services
• The fines and legal fees could be so high you risk being shut down‍

Risk two is reputational – getting in trouble with your clients (potential and existing)‍

• The DIA are known to name and shame businesses and organisations who have not met their compliance responsibilities (not the press you want)
• Adverse media coverage can really hurt the public perception you’ve worked so hard to build (most clients don’t want to be seen associating with rule breakers)
• Poor or inconsistent processes could hurt your client experience which means you’re unable to deliver the high level of customer service your customers expect (they might go elsewhere)
• You can damage the trust of your clients if you’re non compliant – whether it was intentional or not
• If you’re looking to attract investors, partnerships or build your network in other ways, this can be much harder to do if you’ve been non-compliant

Risk three is operational – painful processes and poor record keeping impacts your staff (and auditors)‍

• If your AML isn’t straightforward, it’s a massive distraction and could lead to task overwhelm
• Manual processes can disrupt the flow of work – this is rubbish for staff morale and your customer experience
• You must retain customer due diligence (CDD) records for at least 5 years after the end of the business relationship – poor systems or inconsistent processes can make meeting this requirement difficult which could lead to compliance breaches
• Your staff waste time on AML tasks when they could be converting a sale or charging billable hours
• It becomes so much harder to scale and take on more clients (this can hinder your growth and impact the opportunities you feel you can chase)
• Training new staff becomes difficult and confusing (plus, you risk knowledge or processes being lost when people leave your organisation)
• Auditing time becomes painfully slow (and costs balloon) as auditors are forced to trawl through paperwork, Dropbox folders, or worse – the right documentation hasn’t been collected at all
• In short, non-compliance or clunky compliance holds your staff and your business back

Easily onboard a business, trust or individual and keep ahead of the latest AML regulations with APLYiD

With APLYiD you avoid the pain of AML non-compliance or clunky patched together processes, allowing you to manage all your AML due diligence, for every client, every time – from start to finish.

Yes, there are risks – some in your face and others not so obvious but APLYiD can keep you safe and secure and compliant, without bottlenecks, stress and adding to your workload.

APLYiD helps you stay secure, clean and in the clear during onboarding, due diligence, ongoing monitoring and auditing. Here’s how:

• ‍Onboard – Request the right docs every time with guided document collection‍
• Verify – Verify and easily re-verify your clients using the right AML, KYC, and KYB checks‍
• Manage – View and manage all AML activities and risks – for every client – in one place‍
• Monitor & relax – Set risk levels, automate review alerts and set up ongoing monitoring

Plus, you get:

• ‍Streamlined processes: APLYiD streamlines the whole AML compliance process. Our intuitive workflows guide you through every step for every client (without getting on anyone’s nerves). This prevents checks and balances from falling through the cracks. It makes it easier to onboard staff – and knowledge and records won’t be lost when staff leave.‍
• Confidence: APLYiD lets you confidently manage your entire AML due diligence – for every client – from start to finish. You get remote biometric KYC and AML capabilities, business screening and onboarding, PEP, sanction and adverse media screening (EDD), risk assessments, editable risk ratings and ongoing monitoring.

AML compliance doesn’t have to be painful.

The consequences of AML non compliance are heavy, but the process of being compliant doesn’t have to be. APLYiD is a no nonsense AML platform that can keep you clean, in the clear and on the right side of your customers, staff, auditors, and the law.
We’ve designed APLYiD to be so easy you don’t need to speak to us, book a demo, or get any training. Once you’ve signed up, you’ll be ready to go in minutes.

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