What is a primary goal of an AML compliance program?

A primary goal of an AML compliance program is to detect and prevent money laundering activities. This is essential for financial institutions to maintain the integrity of the financial system and to comply with regulatory requirements. By implementing an effective AML compliance program, institutions can identify suspicious activities and transactions that may indicate money laundering or other financial crimes. This proactive approach helps mitigate risks and protect the organization from potential legal and financial penalties.

The focus on detection and prevention is crucial because money laundering can have severe consequences not only for the institutions involved but also for the overall economy and society. By adhering to AML regulations and practices, institutions help to create a safer and more robust financial environment, deter criminals from exploiting the system, and support national and international efforts to combat financial crime.

Options that focus on generating revenue, facilitating transactions without oversight, or simplifying the onboarding process do not align with the primary objectives of an AML program. While these elements may be important for a business, they are not the core focus of AML compliance efforts, which prioritize the identification and prevention of illicit activities.