Which component is not typically included in a full-scope AML audit?

A full-scope Anti-Money Laundering (AML) audit typically includes a comprehensive examination of various components essential to ensure that an organization complies with relevant regulations and effectively manages its risk exposure. Among these components, governance, customer due diligence, and legal requirements play crucial roles.

Governance refers to the framework of policies and procedures that an organization establishes to oversee its compliance with AML laws and regulations. This includes the structure of oversight bodies, such as the board of directors and compliance committees, and their roles in ensuring effective AML practices.

Customer due diligence (CDD) is a core process in AML strategies, involving the assessment of a client’s identity and the evaluation of their risk profile. This is vital for preventing money laundering activities and ensuring that customers do not pose a financial crime risk.

Legal requirements encompass the obligations an organization must adhere to according to applicable laws and regulations, including record-keeping, reporting suspicious activities, and implementing internal controls. This legal compliance is fundamental to the effectiveness of an AML program.

Market analysis, while it can provide valuable insights into industry trends and the broader financial environment, is not typically a component of a full-scope AML audit. Instead, it is more relevant to business strategy and risk assessment activities. An AML audit primarily