What is a primary purpose of an AML audit?

The primary purpose of an AML (Anti-Money Laundering) audit is to determine the adequacy of an organization's financial crime compliance program. This process involves evaluating whether the institution has implemented effective measures to prevent, detect, and report money laundering and other financial crimes. The audit assesses the effectiveness of policies, procedures, controls, and the overall compliance culture within the organization.

An AML audit helps identify potential weaknesses or gaps in the compliance program that could expose the organization to risks of involvement in financial crimes. By ensuring that the compliance program meets regulatory requirements and is effectively mitigating risks, the organization can enhance its defenses against money laundering and related offenses.