What is the first step in planning an AML audit?

The first step in planning an AML audit is to prepare the audit announcement memo. This memo serves as a formal communication to the relevant stakeholders, notifying them of the upcoming audit. It establishes the framework for the audit process by outlining the scope, objectives, and key dates associated with the audit.

Preparing the announcement memo fosters transparency and helps set expectations for the audit. It is crucial for ensuring that all parties involved are aware of their roles and responsibilities during the audit. Additionally, the memo can prompt stakeholders to start compiling necessary documentation and preparing for preliminary interviews, making the overall audit process more efficient.

While conducting preliminary interviews, establishing a timeline, and gathering documentation requirements are important subsequent steps, the audit announcement memo lays the foundation for all these activities by communicating the initiation of the audit process and aligning the team’s efforts towards a common goal.