AML solution to combat money laundering

AML

In 2017 new legislation was adopted in Norway to combat money laundering and terrorist financing. The new legislation applies to individuals and organisations in industries in which the risk of money laundering has increased. One of its consequences is that such firms need to be more focused on customer data, e.g. by asking for more information from their customers.

AML stands for “anti-money laundering”. Firms have to gather information on the banking connections and ownership relationships of all their customers so that they can carry out anti-money laundering checks. To combat money laundering, firms have to employ KYC, which stands for “know your customer”. KYC consists of banking and currency regulations for financial undertakings that work with private customers. It means that they are required to identify the counterparty before a transaction can be completed. KYC thus requires firms to be better at identifying their customers, which minimises the risk associated with transactions. In other words, KYC is an important part of the AML process, and new KYC requirements are constantly emerging.

In 2017 a range of new legal requirements were introduced for banks and financial undertakings with the aim of combatting money laundering and terrorist financing. The legislation applies to individuals and organisations in specific industries in which the risk of money laundering is present. Such organisations have to obtain specific information about their customers in order to comply with the legislation. It also means that in some instances they have to gather additional information on existing customers who pre-date the current legislation. We at Itera have developed a time-saving solution for meeting these requirements!

Itera works with numerous firms in the financial sector, where AML is an important part of selected customer solutions. We have recently developed - for a large organisation in the financial industry - a B2B onboarding portal solution that gathers information and documentation from both new and existing customers. This is achieved through the use of an automated workflow and various certificates and secure log-in methods. In purely practical terms, should a potential customer want a given product from our customer, the potential customer has to provide all the information required by the Financial Supervisory Authority of Norway and the legislation before it can access the service. For existing customers from which further information is required under the AML “rules”, an electronic letter is sent to the customer. The customer can then log in through a secure portal and complete the forms that are relevant to it as a customer. The information held on the customer is then updated with the information provided in accordance with the regulations.

We are thus helping our customer to meet the requirements of the Norwegian Anti-Money Laundering Act and to combat money laundering and terrorist financing.