What does AML governance refer to?

AML governance refers to the comprehensive framework that encompasses the policies and procedures guiding an organization's efforts to combat money laundering (AML). This governance structure is crucial as it establishes the organization's risk appetite, sets accountability for AML compliance, and defines how resources are allocated to prevent financial crime. It ensures that there are proper controls in place, outlines roles and responsibilities, and provides a basis for effective communication and training on AML issues.

The importance of having a well-defined AML governance structure cannot be overstated, as it helps organizations not only to comply with regulatory requirements but also to promote a culture of compliance throughout the organization. This ultimately leads to more effective identification and mitigation of risks related to money laundering and terrorist financing.

In contrast, other options, while related to AML, do not capture the essence of governance. Daily operations focus more on the execution of AML policies, marketing strategies pertain to promoting compliance programs rather than the guidelines themselves, and technical systems are tools implemented under the governance framework but do not encompass the full scope of AML governance itself.