What type of relationships should AML auditors aim to establish with stakeholders?

AML auditors should aim to establish positive and collaborative relationships with stakeholders because these relationships are vital for ensuring effective communication and cooperation in combating money laundering and other financial crimes. A positive and collaborative approach fosters an environment where stakeholders are more likely to share pertinent information, insights, and resources that can enhance the effectiveness of the audit process.

Building a rapport with stakeholders enables auditors to better understand the operational complexities and risks faced by the organization, which in turn facilitates a more thorough and comprehensive audit. Collaborative relationships encourage stakeholders to take an active role in the compliance efforts, aligning goals and fostering a shared commitment to maintaining robust anti-money laundering practices.

In contrast, the other options do not align with the ideals necessary for effective auditing. Competitive relationships could hinder information sharing and create barriers, while formal and reserved relationships could limit opportunities for open dialogue and collaboration. Mandatory and transactional relationships may lead to minimal engagement, avoiding the nuances required for effective AML compliance. Therefore, positive and collaborative engagements are critical in creating a productive atmosphere that promotes adherence to AML regulations and the overall integrity of the financial system.