It’s A Waste Of Money To Be Compliant!

By Frank Lieshout | 5 min read

Just like the rain – we’re back!

It’s time again to talk about those three (some say ‘dirty’) letters.

A, M, L

That’s right – AML – Anti Money Laundering and the regulations that come with it.

In our original article, we mentioned a number of objections we hear about complying with AML obligations and debunked these as myths.

Just call us the AML Myth Busters! Here is what we have addressed in previous articles:

• ‘There’s no consequence for not doing it, eh?’
• ‘It doesn’t apply to me.’ 
• ‘It’s just not a priority.’ 
• ‘It wouldn’t affect any of MY clients’
• ‘I Could Be Doing Anything Else’
• ‘Who Cares?’
• ‘It’s A Waste Of Time!’
• ‘I see no benefit from having to PAY for a bloody audit!’

In this article we look at the objection of ‘It’s a waste of money to be compliant.’

There has been a lot in the news lately about things being wasted.

We’re doing our best (maybe just some of us), but money is still being wasted on a number of things, including:

• Clothes you never wear
• Food you never eat that goes off – I’m guilty of my eyes being bigger than my stomach
• Driving to the other side of the city just to save an extra 1c/litre on fuel
• Buying things you don’t need, just because they were on special
• Buying those damn lollies and chocolate they put right next to you when you are waiting in line at the supermarket checkout
• Buying a bigger house than you need – you will always find stuff to put in the rooms you don’t need
• Tattoos you regret the next day

What is not a waste of money is being compliant with your AML.

Let’s look at why… 

• A lot more money can be wasted (think taken from your bank account) if money launderers get in. Once they’re in, you’re stuffed.
• The element of surprise is a bigger waste than money spent on AML compliance. As we have noted in our previous article, you could be totally unaware that money laundering was being carried out in your business.

No one enjoys a knock on the door from the police.

• The prospect of legal costs and prosecution is a huge waste of money compared to being compliant. It may be enough for your business not to survive so your livelihood is gone. This could lead to personal, as well as financial, issues.

There are penalties of up to $200,000 (individual) and a mere $2 million (firms) for not being compliant.

• Then there are the non-monetary reasons, things money can’t buy:
  • Peace of mind
  • Happiness
  • Freedom

All fantastic things, right? Who wouldn’t want those?

On the upside of not being compliant and being a party to money-laundering, you could earn money by playing yourself in the TV show Ozark.

Bound to get an Emmy for that.

So there you have it, being AML compliant is not a waste of money.

I’m off to Briscoes as they have a 70% off sale on automatic soap dispensers! 

If you haven’t already had your AML Audit completed, get in touch with us.