What is an AML audit for APIs?

An AML audit for APIs evaluates how well your anti-money laundering / counter-terrorist financing (AML/CTF) program is designed and operates in practice, ensuring controls align with regulatory requirements and detecting potential non-compliance or risks.

What is involved in transaction and sample testing?

This involves selecting a sample of transactions, customer records or account activity and testing them against your controls, policies, thresholds, monitoring rules and escalation to see whether the system is working as intended and identify suspicious or non-conforming behavior.

How often should an AML audit be conducted for APIs?

The frequency depends on regulatory expectations, the size and risk profile of the API, changes to operations or services, and past audit findings. Many institutions target annual audits or more frequent reviews if they operate in high-risk environments.

What is the purpose of gap analysis in AML audits?

Gap analysis identifies where your current AML program falls short of regulatory standards or best practices. It helps prioritize remediation, allocate resources, and focus on high-risk areas requiring improvement.

How do you verify remediation after an AML audit?

Follow-up verification means reviewing whether the recommended changes have been implemented, testing the new controls or procedures, and confirming that the risk or compliance issues have been addressed effectively.

Who should receive the audit findings report?

The audit findings should typically go to senior management, the compliance or risk oversight committee, the board (if applicable), and relevant internal stakeholders to drive action and remediation.

AML Audit Services API | Regulatory Assurance Experts

AML Audit

A robust anti-money laundering (AML) framework is a cornerstone of regulatory compliance for Authorised Payment Institutions. The FCA and HMRC expect APIs to maintain effective controls, continuously monitor financial crime risks, and demonstrate the ability to detect, prevent, and report suspicious activity. ABM Global’s AML Audit provides a comprehensive, independent assessment of your AML/CFT program, ensuring regulatory compliance, operational effectiveness, and readiness for inspection.

Policy and Procedure Review

We evaluate your AML/CFT policies and procedures to ensure they are fully aligned with FCA Handbook requirements, the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (MLR 2017), and FATF recommendations. This includes a detailed assessment of internal controls, escalation protocols, record-keeping practices, and overall policy adequacy, ensuring that your firm has a structured and enforceable compliance framework.

Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) Assessment

Our audit examines the effectiveness of your CDD and EDD processes, including client onboarding, identity verification, beneficial ownership checks, and ongoing monitoring. Special attention is given to high-risk clients, politically exposed persons (PEPs), and complex corporate structures. We assess whether risk classification and ongoing reviews are applied consistently and effectively across all client segments.

Transaction Monitoring and Escalation Processes

We assess the design and functionality of your transaction monitoring systems, including automated alerts, thresholds, and patterns for detecting suspicious transactions. ABM evaluates investigation procedures, escalation protocols, and reporting lines, ensuring that suspicious activity is identified and managed promptly and effectively.

Suspicious Activity Reporting (SAR) Compliance

The audit reviews the SAR filing procedures, reporting timelines, and documentation standards to confirm compliance with FCA and HMRC requirements. We ensure that your SAR processes are robust, auditable, and capable of demonstrating regulatory readiness during inspections.

Gap Analysis and Recommendations

ABM identifies deficiencies, operational weaknesses, and compliance gaps within your AML framework. We provide clear, actionable recommendations to strengthen controls, improve efficiency, and enhance regulatory compliance. This includes remediation plans, process improvements, and guidance on implementing best practices.

Regulatory Inspection Preparedness

Our AML Audit supports preparation for FCA and HMRC inspections, including mock audits, documentation reviews, and evidence compilation. We help ensure your AML program can withstand regulatory scrutiny and demonstrate effective risk management practices.

Continuous Improvement and Follow-Up

Beyond the audit, ABM provides ongoing support to monitor, refine, and enhance AML controls. This includes updating policies, improving transaction monitoring systems, and tracking remediation measures, ensuring your API maintains a dynamic and resilient compliance framework in a rapidly evolving regulatory environment.