What factors could contribute to the root cause of issues identified in an AML audit?

The selection of factors that relate to systems, people, and processes as root causes of issues identified in an AML audit is particularly relevant because these elements encompass the core operational framework of an organization.

In an AML context, the systems refer to the technology and software that are used to monitor and report transactions for suspicious activity. If these systems are outdated, poorly integrated, or inadequately configured, they can fail to detect suspicious activities that a well-functioning system would highlight.

People are vital as they represent the workforce responsible for compliance functions. Their training, awareness, and adherence to compliance protocols directly impact the effectiveness of the AML program. If staff are not adequately trained or understand the compliance requirements, errors in judgment or oversight can occur, leading to gaps in compliance.

Processes encompass the workflows and procedures established within an organization to ensure compliance with AML regulations. Inefficient processes can result in the mismanagement of information, delays in reporting, or poor execution of necessary compliance activities. Streamlined and effective processes are crucial for ensuring that all aspects of AML controls are functioning optimally.

While other factors such as the nature of transactions, historical compliance records, volume of transactions, technological advancements, and market conditions are important considerations, they could be seen as contributing factors or influencing