One of the issues faced by the modern financial world is the syphoning of money from one place/project to another. Though rules have been made stricter worldwide the tentacles have spread far and wide and can be seen in the world of charitable support as well.
AFL or Anti-money laundering rules are those procedures to prevent disguising illegally obtained funds as legitimate income. Organisations worldwide have set procedures to check which include KYC, software filtering and implementation of holding periods.
Traditionally organisations have adopted a standard four-part procedure 1) Strict internal policies, procedures, and related controls in place 2) A designated compliance officer, 3) An up-to-date, thorough and ongoing training program 4) Independent review for compliance.
Though these may cover only limited range of transactions and criminal behaviour, their implications are far-reaching and adhering to these would help organisations of all kinds to keep their books – and reputations – in order.