MLRO (Money Laundering Reporting Officer), also known as AML Officer or Compliance Officer is a responsible person in a fintech project or crypto company that deals with risk management in the field of anti-money laundering and terrorist financing. The MLRO ensures compliance with all relevant laws and regulations related to money laundering prevention and assesses risks associated with customers, transactions, and other company operations.
The role of the MLRO in a modern financial, payment, or crypto company is extremely important, as modern financial solutions and cryptocurrencies are often used for illegal purposes, including money laundering and terrorist financing.
What does a Compliance Officer do?
The MLRO not only ensures compliance with AML/CFT regulations but also helps the company identify suspicious financial transactions, thereby avoiding financial losses and reputational risks associated with illegal client activities. Thus, the MLRO or in other words, the AML officer, is a key figure in the financial sector and blockchain industry’s fight against illegal actions related to money laundering and terrorist financing.
WHY IS MLRO NEEDED?
AML Officer — a specialist in combating money laundering
Financial startups and crypto companies directly face risks associated with financial operations, which can have a significant impact on both the company’s reputation and its financial condition. To mitigate these risks, it’s crucial to have appropriate systems and experts for analysis and monitoring.
The presence of qualified specialists in the field of AML/CFT is often a condition for obtaining a crypto license or licensing activities in the field of finance or payment services.
MLRO in a crypto company
The Compliance Officer in a crypto company is responsible for adhering to current crypto-business regulations and standards for preventing money laundering (AML) and financing terrorism (CFT). Since virtual asset transactions have become an integral part of the modern economic system, they began to attract the attention of regulators worldwide. Thus, the role of the MLRO in the cryptocurrency industry has become crucial. To successfully perform their duties, an MLRO in a crypto company must have deep knowledge in the field of cryptocurrencies, tokens, and other virtual assets, as well as skills in tracking and analyzing blockchain network data.
MLRO in a fintech project
The AML officer plays a very important role in fintech projects and the payment industry as a whole (banks, EMI, PSP, crowdfunding, funds, etc.). The MLRO constantly monitors payment operations and financial transactions, identifying and analyzing non-standard and suspicious activities. Moreover, he ensures training and informs employees about the latest trends and threats in the field of money laundering.
RESPONSIBILITIES OF MLRO
What functions does the MLRO perform?
The primary responsibilities of the MLRO include implementing policies and procedures related to anti-money laundering (AML) and counter-terrorist financing (CFT), monitoring virtual asset and crypto transactions, and timely reporting to regulatory authorities.
• Customer verification during the onboarding process;
• Screening and monitoring current financial transactions;
• Identifying non-standard and suspicious activity;
• Communication with the regulator;
• Risk assessment and management;
• Ensuring compliance with AML regulations.
Additionally, the Compliance Officer may be the responsible person for developing and implementing AML/CFT policies and procedures, as well as overseeing staff training and ensuring the company’s client and transaction information is stored in accordance with existing legislation.
HIRING A MLRO SPECIALIST
Recruiting and Employment of the Compliance Officer
Our team specializes in the search, training, and employment of individuals for the MLRO or AML officer positions in crypto companies, fintech startups, and other financial projects where legislation mandates the presence of an in-house AML specialist.
We carefully select MLRO candidates, considering both the individual qualities of the prospective employee and the wishes voiced by the client. When searching for staff and interacting with potential candidates, we primarily focus on:
• Experience and education in law and finance;
• Prior work experience in the AML field;
• Knowledge of legislation, regulations, and international AML/CFT standards;
• Impeccable business reputation.
If necessary, we are also ready to offer professional training to AML specialists or provide advanced training courses. We can also offer ongoing legal and consulting support in the AML/CFT sphere for crypto projects and financial companies.
If your crypto project or financial startup is currently looking to hire a qualified MLRO or other specialists in the field of AML, feel free to reach out to our consultants and HR experts.
Together, we will find effective AML specialists for your project, and also provide you with comprehensive support in structuring internal processes and adapting the latest IT solutions for AML/KYC procedure automation in your business model.