Anti-Money Laundering Independent Compliance Audit

Outline the components of an AML/CFT compliance program, including policies, procedures and controls, a designated compliance officer, training, risk-based practices, and independent audits to deter money laundering and terrorism financing.

Learn how regulators expect AML/CFT compliance audits, including independent audit reports, baselines from the BSA AML Examiners Manual, and evaluation of policies, CDD, training, risk assessment, and management information systems.

Define an aml/cft audit plan with clear objectives, scope, timing, and resources, then conduct document reviews, field work, and interviews to produce final reports.

Understand the aml/cft audit process from the open door entry meeting and document requests through fieldwork, testing, and internal control evaluation, to draft and final reports for management and board.

Examine how the institution's email safety compliance manual documents policies, procedures, and controls, how the board approves it, and how it supports governance and regulatory obligations under AML/CFT frameworks.

Review excerpts of a bank's compliance manual to identify missing or inadequately stated elements, complete the case study exercise using attached resources, and verify solutions before proceeding.

Examine aml/cft controls through transaction testing, assessing governance, risk assessments, onboarding, customer due diligence, reporting, and record keeping to ensure timely, accurate regulatory compliance.

Evaluate the institution's CFT monitoring through transaction testing by comparing banking data to FAA CFT reports and identifying missed currency reports and sanctions-related red flags, including high-risk transfers.

Review AML/CFT audit findings on email safety compliance, identify areas of concern, exceptions, and gaps, and prepare the draft report with key resources.

Learn to prepare a draft and final AML/CFT compliance audit report, capturing findings and recommendations, outlining scope, procedures, and observations, while ensuring independence and regulator-ready documentation.

Understand how aml/cft regulators set expectations for real-time transaction monitoring and continuous due diligence. Learn why transparent, explainable screening tools for sanctions and peps are essential to combat financial crime.

Set a clear scope and objectives for AML systems audits. Outline boundaries, questions, and resources to ensure regulatory alignment, data integrity, and effective system testing.

Conduct fieldwork by interviewing key personnel and observing the system in action to verify alignment with policies. Gather configurations, access logs, alerts, watch lists, and service level agreements for evidence.

Use a structured audit checklist with data extraction tools, sampling matrices, and access review templates to standardize email system reviews, tailor risk thresholds, and ensure alerts and segregated duties.

Identify recurring AML control gaps—from default configurations and manual name screening to weak alert documentation and duties segregation—and deliver clear, evidence-based reporting with risk ratings and actionable recommendations.

Review the key takeaways from the anti-money laundering independent compliance audit lecture, clarifying what was learned and its implications for regulatory compliance.