Which section of an AML policy details procedures for reporting suspicious activities?

The section of an AML policy that details procedures for reporting suspicious activities is the reporting procedure. This section is critical because it outlines the specific steps that employees must follow when they identify potentially suspicious transactions or activities. Clear guidelines ensure that employees know their responsibilities in monitoring for suspicious behavior and how to escalate their concerns to the appropriate compliance personnel or relevant authorities.

The reporting procedure typically includes the criteria for identifying suspicious activity, the method of reporting, the timeline for reporting, and any necessary follow-up actions. This proactive approach aims to enhance the overall effectiveness of the AML program by ensuring that suspicious activities are handled efficiently and in compliance with regulatory requirements.

The other sections mentioned serve different purposes in an AML program. Compliance assessment focuses on evaluating adherence to regulations and internal policies, risk assessment identifies and evaluates the risks associated with money laundering and terrorist financing, while transaction monitoring involves the ongoing review of transactions to detect unusual patterns or behaviors. These are all essential components of an AML framework but do not specifically focus on reporting suspicious activities.