What is a common challenge faced when conducting AML audits?

The challenge presented by rapidly changing regulatory environments is significant for conducting AML audits. Financial institutions and other organizations must continuously adapt to new laws, regulations, and guidance related to anti-money laundering. This can create difficulties for auditors, as they need to stay informed and ensure compliance with the most recent requirements. Failure to keep up with these changes can lead to gaps in the audit process, making it harder to assess compliance effectively and increasing the risk of regulatory penalties for the organization being audited.

In contrast, other potential challenges, such as lack of interest from employees or restrictive audit guidelines, may not be as pervasive across organizations. Furthermore, while difficulty in obtaining financial records can occur, regulatory environments impose a broader and continuous impact, affecting how audits are conducted and the resources needed to ensure compliance.