Independent AML Testing for MSBs, Crypto & Fintech Businesses
Money Services Businesses are required to independently test their Anti-Money Laundering (“AML”) compliance programs. Hodder Law conducts attorney-led AML independent reviews and audits for MSBs, including cryptocurrency businesses, Bitcoin ATM operators, OTC desks, money transmitters, payment companies, and other fintech businesses.
Our reviews are tailored to your actual business model and risk profile and conclude with a written report identifying findings and recommended remediation.
Schedule an AML Independent Review with Hodder Law
Do You Need an AML Independent Review?
Under the Bank Secrecy Act and 31 C.F.R. § 1022.210, an MSB’s AML program must provide for independent review to monitor and maintain an adequate program.
An independent review may also be needed when your company is:
- Preparing for a FinCEN or IRS Title 31 examination
- Applying for a state money transmitter license
- Responding to a bank or financial institution
- Addressing findings from a prior review
- Preparing to launch regulated operations
AML independent review, independent AML audit, and independent testing are often used to describe similar compliance work. For MSBs, FinCEN’s regulation specifically refers to independent review.
What Does an AML Independent Review Cover?
The scope depends on your business, transaction activity, and risk profile. Our review may include:
- AML policies and internal controls
- AML risk assessment
- KYC, CIP, CDD, and EDD
- Transaction monitoring
- Suspicious Activity Reports (SARs)
- Currency Transaction Reports (CTRs) and recordkeeping
- OFAC and sanctions screening
- AML training
- Compliance Officer oversight
- Prior findings and remediation
For cryptocurrency businesses, we may also review blockchain analytics, wallet screening, digital asset transaction monitoring, Travel Rule considerations, and other crypto-specific controls.
How the Independent Review Works
1. Scope
We review your business model, products, customers, transaction activity, regulatory status, and risk profile.
2. Review & Testing
We examine the relevant AML documentation and, where appropriate, test customer files, transactions, alerts, SARs, screening records, and other compliance activity.
3. Written Report
You receive a written AML Independent Review Report documenting the scope, testing performed, findings, and recommended corrective actions.
4. Remediation
If deficiencies are identified, Hodder Law can provide legal and regulatory guidance to help address them.
AML Independent Reviews for Cryptocurrency Businesses
Crypto businesses can present compliance risks that traditional AML reviews may not fully address. Hodder Law’s practice focuses on Bitcoin, cryptocurrency, payments, and financial regulation. Depending on your business, our review can address issues involving:
- Bitcoin ATMs
- OTC trading
- Hosted and unhosted wallets
- Blockchain analytics
- Wallet screening
- Crypto-to-fiat transactions
- Cross-border payments
- Sanctions exposure
What You Receive
At the conclusion of the engagement, you receive a written independent review report addressing:
If issues are identified, we can also assist with remediation, policy updates, regulatory responses, and preparation for FinCEN or IRS Title 31 examinations.
Frequently Asked Questions
How often should an MSB conduct an AML independent review?
FinCEN’s MSB regulations require independent review but do not prescribe one review interval for every MSB. Frequency should reflect the risks presented by the business.
Can our AML Compliance Officer conduct the review?
The review must be sufficiently independent of the functions being tested. Someone responsible for administering the AML program generally should not independently test their own work.
What do we receive after the review?
A written report documenting the scope and methodology of the review, areas tested, findings, and recommended corrective actions where appropriate.
Can Hodder Law help fix deficiencies?
Yes. We can assist with remediation, including policy updates, internal controls, transaction-monitoring procedures, reporting issues, and regulatory responses.
Schedule Your AML Independent Review
Whether you need independent testing for ongoing BSA compliance, a money transmitter license application, banking relationship, or regulatory examination, Hodder Law can review your AML program and provide a documented independent assessment.