Essay Example on Management of anti money laundering CIMB

By having a good management of anti money laundering CIMB can reduce the risk of exposure to financial crime This is done with the efficient operated of anti money laundering system such as Account and Transaction AML Monitoring Watchlist as well as Payment and Sanction Filtering This will bring advantage to both customer and bank Indirectly it will protect CIMB from the reputation damage fines and vulnerabilities that CIMB withstand when the concentration of illegal funds increments Reputation is vital for an industry especially bank like CIMB With reducing the risk of exposure to financial crime the reputation of the CIMB will be enhanced The good reputation regarding the business practices and associations will increase the confidence in the integrity of the CIMB This will then safeguard the operation of CIMB This is because customers regardless of borrowers depositors or investors they will stop their relationship with a bank whose reputation has been harmed by doubts or assertions of money laundering The customer will feel worried and afraid to choosing this bank for fulfil their financial need Therefore with enhancing the reputation the number of borrowers and depositors will also be improves The situation of losing high quality of borrowers and cause reduces profitable loans can be minify It can also avoid the depositors withdraw their money thus lessening an inexpensive source of funding for the CIMB Besides reducing the risk of exposure to financial crime can also avoid suffering in fines and investigation by relevant authorities When there is money laundering in a bank the fines can cost bank heavily 

This will consider as an enormous expenses for bank However in the period of investigation of money laundering the normal operation of bank will be affected Some counter maybe close for investigation and variety of document will be need for further survey All of this situation will affect the overall operation of bank In a nutshell bank is a placed that facilitated money laundering one way or another even inadvertently will also suffer huge fines and damage reputation By having a good management of anti money laundering CIMB can gain a competitive advantage and operate in an efficiency and effectiveness manner The CIMB branch has a good management of anti money laundering alerts The Anti Money Laundering frameworks and supporting system of CIMB facilitate the AML risk client and transaction checking system which consist of Watchlist and Sanction Management Know Your Customer and Customer Due Diligence CDD regulations Account and Transaction AML Monitoring as well as Payment and Sanction Filtering First and foremost CIMB possess an assortment of Watchlist and sanction list management That is CIMB able to accurately match their customer databases against watch lists and ready to consistently monitoring list sources for increments and amendments quickly updating records with the most recent changes and parsing standardizing as well as re arranging list information before matching Hence CIMB will be able to ensure their customers are state the true identity and checking to ensure they have not been placed on any sanctions lists in the entire world The management of Watchlist is run well and can identify Politically Exposed Persons thus verify that money managed in the name of PEPs is not achieved from criminal actions Besides CIMB was doing well in the aspect of Know Your Customer and Customer Due Diligence to manage anti money laundering CIMB having a systematic process of identifying new customers and they will not establish bank relationships with customer until their new clients identities have been satisfactorily verified 

When the CIMB realizes that there is not enough information about existing customers they will check and contact customer to ensure that all relevant information can be attained as quickly as possible By knowing the customer CIMB will be more understanding the normal and reasonable account activity of the customer and can effectively control and reduce the risk so that they have a way of identifying the transactions that are not in the normal mode of account activity Overall CIMB will be able to manage well in client identification and record keeping promote diligence in detecting and reporting suspicious transactions CIMB monitors the risk of customer transactions daily or in real time with apply the anti money laundering transaction monitoring software However by combining the information derived from daily monitoring with analysis of customers historical data and account profile CIMB will achieve whole picture analysis of a customer's profile risk levels and anticipated future movement and can also generate reports and make alerts to suspicious action The transactions monitored can comprise cash deposits and withdrawals wire transfers as well as ACH activity Last but not least the CIMB s Senior Management and its RIs are aware and will continue to maintain adequate oversight of the AML measures undertaken by all RIs including enhancing the effectiveness of the internal controls system for AML in compliance with all related laws regulations guidelines and industry best practices in order to effectively combat money laundering