AML documents course

[kkein]

Can anyone here explain at high level what's the AML procedure?
The bank asks for proof of funds. The client provides documents about proof of funds. The bank says thank you all good. Then what happens? And who does the bank share the documents with?

 

[Sols]

The bank doesn't share it with anyone unless they are required to by law enforcement, court order, or supervising authority's instructions, or if they submit a SAR (Suspicious Activity Report) to the relevant authorities.

After some period of time, the information is refreshed (customer must provide new/updated documents) or if the relationship has ended, the information is destroyed (usually after 5–10 years depending on applicable law).

 

[kkein]

@Sols Thanks a lot for the clarification! In this specific question i was referring to documentation related to a specific transaction, not general KYC docs (so justifying a large transfer that trigger something like a suspicioius activity, i suppose?)

 

[Alexmorgan]

@Sols Thanks a lot for the clarification! In this specific question i was referring to documentation related to a specific transaction, not general KYC docs (so justifying a large transfer that trigger something like a suspicioius activity, i suppose?)

Now banks who are taking care about this with the help of AI in most cases

There is 2 kind of AML check

Either you triggered their AI redflags then their check only will take few hours to few days and no sharing with anyone of the information

Or you triggered something international or you got money from someone who's in international Black list or you have any connection with him or them , and here it will take months to clarify and yes here there is a lot of information sharing with GOVs

 

[Sols]

@Sols Thanks a lot for the clarification! In this specific question i was referring to documentation related to a specific transaction, not general KYC docs (so justifying a large transfer that trigger something like a suspicioius activity, i suppose?)

A SAR is something financial institutions (and others) file with the authorities if they suspect criminal/illegal activities and if those suspicions cannot be alleviated with the information provided.

Generally speaking, regulators require that AML/KYC procedures are in place with financial institutions. They perform routine and ad hoc checks to ensure that these procedures are being followed. The vast majority of documents sent to a financial institution never leaves the financial institution. They are just collected by the financial institution so that in case the regulator knocks on the door, the documents can be provided.

 

[JackAlabama]

Now banks who are taking care about this with the help of AI in most cases

There is 2 kind of AML check

Either you triggered their AI redflags then their check only will take few hours to few days and no sharing with anyone of the information

Or you triggered something international or you got money from someone who's in international Black list or you have any connection with him or them , and here it will take months to clarify and yes here there is a lot of information sharing with GOVs

nah cannot be said in such a generalized manner.