What is usually presented in the preliminary report during the reporting phase of an AML audit?

The preliminary report during the reporting phase of an AML audit typically includes the findings directed to the management of the audited entity. This report serves as a critical communication tool, summarizing key observations and any identified issues that require the attention of management. It lays the groundwork for discussing the overall effectiveness of the entity's anti-money laundering programs and compliance measures.

Presenting findings at this stage allows management to understand the potential risks and deficiencies that were uncovered during the audit process. This engagement is essential for fostering a proactive approach to improving compliance and addressing any weaknesses. The findings are typically discussed to facilitate further dialogue on how the organization can address the identified issues and enhance its AML framework.

In contrast, detailed data analysis, feedback from clients, and recommendations for future compliance training may be part of the broader audit process but are not the primary focus of the preliminary reporting phase. Data analysis might be included in the audit's detailed findings later, while client feedback and training recommendations would generally come in subsequent communications after the findings have been discussed and management has had an opportunity to respond.