As the ‘world’s currency’’ the US dollar is more vulnerable to money laundering – don’t put your business at risk

Most financial institutions across the world use US Dollars as a currency for foreign exchange and other related transactions. And while dollars may not be the most prominent in terms of valuation, the extensive and widespread use of the US currency does make it the most liquid, and therefore, more vulnerable to money laundering.

This is because, when looking to move their money around, launderers look to use countries where the laws are less rigorous and currency that is widely accepted, and that’s US dollars. The other advantage launderers get from working in dollars is that, as they move their money around the world, it doesn’t lose value by being exchanged from one currency to another.

The vulnerability of the dollar also means, of course, that US financial institutions are also at a heightened risk of handling dirty money - most likely at the integration stage. So, having the correct AML processes in place to ensure the clients you are working for are legitimate, has never been more important.

BSA requirements state that all financial institutions must have a customer identification program (CIP) in place to identify and verify all customers to ensure they are who they say they are. The BSA also requires financial institutions to have a system of internal controls in place to assure ongoing compliance and file a Suspicious Activity Report (SAR) if they detect any known or suspected transactions related to a money laundering activity, or any violation of the BSA/AML.

Complying with the BSA/AML manually is a time-consuming task and open to errors, so, if you have not done so already, you should seriously consider moving to electronic verification – it is the most reliable  - not to mention quickest and easiest - way to ensure your business is complying with the BSA and that your Customer Identification Program is fit for purpose.

Our electronic anti-money laundering platform can perform all the compliance checks you need to ensure the people you are dealing with are who they say they are. Our system also screens all checks for sanctions, PEPs and runs automatic enhanced due diligence on any matches so you can see if that person poses a risk of money laundering to your business. Not only that, but the system constitutes to monitor every individual so that if anything changes and their name becomes associated with any illicit activity, you are immediately notified and can take action.

This type of all-in-one system is absolutely vital in the global fight against money laundering, as it can check internationals and well as US citizens, ensuring you and your business are protected and fully compliant at all times.