Fintelekt Advisory Services and the Asian Bankers Association jointly organised the first virtual workshop for 2025 on Making your AML Team Audit-Ready, conducted on January 15, 2025.

The resource person for the workshop was Ravi Lahoti, a Chartered Accountant and Company Secretary by qualification and an AML Expert.

Arpita Bedekar, Chief Operating Officer, Fintelekt Advisory Services hosted the programme.

The virtual workshop was well attended, with participants from 14 countries and 25 institutions, including banks, regulatory bodies, financial services, life insurance companies, technology firms, banking associations, trust service providers, asset management companies and consultancy firms.

This workshop was specifically designed to equip AML compliance teams with the knowledge and tools required for seamless audit readiness within financial institutions.

Ravi began the workshop by outlining the fundamental concepts of auditing and touching upon the regulatory framework in AML/CFT (including the Financial Action Task Force (FATF) Recommendations, as well as country-level regulations). He emphasized on the importance of board and senior management oversight to maintain a robust AML environment in an organization. Additionally, he underscored the significance of the audit function as the third line of defence.

AML/CFT Risk Assessment

Ravi discussed the need to identify and assess AML risks, implement appropriate controls, and establish mitigation strategies to address them. He emphasized that the risk assessment should be properly documented and periodically reviewed.

Role of Compliance Officers

Ravi outlined the responsibilities of compliance officers, which include reviewing the effectiveness of the KYC policy, overseeing AML processes carried out by the first line of defence, managing alert configurations, and ensuring accurate regulatory filings.

Audit of AML Departments

Ravi then shared a structured approach to auditing the AML department, detailing the key elements that internal and external auditors must review. He covered critical areas such as:

• Customer onboarding processes and controls
• Review of AML policies and process manuals
• Automation in AML/CFT systems based on risk parameters
• Alert generation and processing

Using a case study, Ravi illustrated how inadequate audit functions can lead to regulatory penalties and reputational damage for financial institutions.

Common Exceptions in AML Audits

The workshop also addressed common exceptions during AML audits, listing down frequent errors made by financial institutions and their costly consequences.

The workshop concluded with an interactive Q&A, where participants raised practical challenges relevant to their daily responsibilities.

All participants received a Fintelekt-ABA Certificate of Completion for attending the virtual workshop.