AML Update: Five Areas of Greater Regulatory Scrutiny

Anti-money laundering (AML) programs are becoming more sophisticated, and regulators continue to ramp up their examinations to focus on a variety of AML compliance activities. These include governance and execution of model risk management programs, calibration of customer due diligence models, management of sanctions risk, expectations for nonbank service providers, and AML program sustainability. As this article explains, financial institutions should address these critical activities and assess their compliance before the next examination cycle begins.