U.S. and Brazil AML Audit Comparative Analysis
Author: Alba Kiihl
In foreign markets, corporations can be exposed to new customers and by creating foreign affiliates, companies become multinational in the process – this is one of the most common courses of an expanding business: going abroad. However, expanding operations beyond the United States in whatever kind of structure (opening of a new branch, establishment of a foreign correspondent banking relationship, joint venture, etc.) requires a certain level of due diligence and understanding of the targeted market. When the matter relates to banking, these aspects become even more critical due to the highly regulated U.S. compliance sector. And as most banking professionals already recognize, Anti-Money Laundering is one of (if not the most) important item on a regulator’s agenda. Therefore, before venturing into a new market, these are some important issues for a Board of Directors to consider. Note that although the main objective of this paper was to compare and contrast Anti-Money Laundering auditing in the United States and in Brazil, topics discussed should be highly positioned within a Director’s due diligence checklist before expanding a banking business anywhere around the world.