AML Audit Services

• You can expect penalties ranging from INR 10,000 to INR 1 lakh per failure/issue. 
• Criminal imprisonment between 3 and 10 years, depending on the severity of the non-compliance. 
• The Enforcement Directorate will search, seize, and freeze your bank accounts and properties. 
• Full cancellation of your license, like NBFC registration, P2P, PPI, payment aggregators, and insurance intermediaries.
• Surprise audits and inspections may lead to operational shutdowns and delays, causing low efficiency and loss of revenue. 
• You can also get sanctioned for processing cross-border transactions and working with international financial entities. 
• Investors will back out of your deals given regulatory blacklisting and license revocations.
• Loss of brand value in the market- the ultimate blow in the market with loss of consumer base. 

After an AML audit, you will get a report with the findings of the auditor, such as gaps, issues in the system, and potential solutions that you can use to correct your systems, improve your AML policy framework, and enhance your transaction tracking mechanism.

Well, you can expect anywhere between 31 and 50 days, depending on your product and services, the company’s overall size, AML system, bulk of transactions/customers, and protocols.
Also, the timeline for implementing the corrective measures may take another 30 to 60 days, depending on the findings and gaps.

You need to submit the reports concerning suspicious transactions and unusual activities within seven days of the said incident/event to the Financial Intelligence Unit- India. Some key triggers include:

• Funds linked to criminal activities.
• Any suspicious transaction for terrorist financing. 
• Unusual and complex transactions that appear unreasonable beyond a reasonable doubt and business rationale. 
• Any attempt where the customer abruptly abandoned a transaction when the system asked for details.  
• Always make sure that your appointed principal officer is the one submitting the reports, and that the said reports aren’t flagged to your clients by any chance- strict confidentiality.

Some of the best industries for business setup in Sri Lanka include:

• Your retained records of the last 5 years. 
• Customer and client database and Politically Exposed Person watchlist.
• Transaction monitoring system
• Full overhaul of the customer due diligence and KYC processes.
• Mechanism and filing of the STRs.
• Employee training feedback, recorded sessions, Q&As, and their awareness around AML.
• Complete rundown of the company’s internal risk management framework for AML and CFT- clients, geographies, and products/services.

• An external auditor who has specialized experience, very highly recommended by regulators in India. 
• An internal staff member who isn't really involved in the day-to-day AML policy framework or workflow. 
• Someone who is a third-party auditor certified by an accredited body or who possesses the required qualifications. 
• Most importantly, an employee engaged in daily transaction monitoring, SAR, or customer onboarding is strictly excluded from the list of eligible reviewers. Also, an AML compliance officer of the said company. 

NBFCs, banks, finance companies, digital payments, e-wallet-related businesses, microfinance institutions, mutual funds, stockbrokers, portfolio management service providers, investment banking firms, insurance entities/intermediaries, real estate agencies involved with high-value properties, gaming platforms, crypto exchanges, and virtual asset service providers.