by InScope-AML

March 01, 2023

An MLROs job is never done.

When Heraclitus said that “Change is the only constant in life” in 535 BC, it is very unlikely that he had MLRO’s in mind. And yet all MLROs would agree that dealing with change is very much part of their role.

In KYC and AML Compliance Management, change comes in many forms. People leave companies, and others join. Some become politically exposed. Others are tainted by events covered in the media. Shares are bought and sold, and UBO statuses change accordingly. Countries are removed or added to lists of high-risk countries. And the list goes on.

So an MLRO’s job is never done, unless one has a system in place that allows them to keep abreast of changes, and which automatically reassesses risk when changes occur. 

An AML Compliance Management solution such as InScope-AML includes features which track multiple sources for relevant changes, and then automatically evaluates the importance of such changes on the MLROs work. Sources which are tracked include high-risk country lists, such as those updated by the Financial Action Task Force (FATF) or the UK’s HMT, UN and EU sanctions lists, as well as Adverse Media lists. Such a system would also ensure that things that change over time, such as document expiries, are tracked and alerts are sent out for follow up.

Through the use of risk scores, which are automatically assigned to each client, InScope-AML also ensures that when change brings about the need for additional measures to be taken due to an increase in risk, these are brought to your attention.

So, yes. Change is constant. But MLROs don’t need to be constantly on the go, firefighting their way through the compliance management process.

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