ABSTRACT
This chapter describes the impact of enforceable regulatory measures affects every enterprise, irrespective of size. It is related to the regulatory provisions when dealing with investments, specifically regarding anti-money laundering (AML). Mandatory regulatory measures related to AML affect every individual and enterprise. The self-regulatory organisations consist of two major groups, namely, the federal banking regulators and the non-banking regulatory agencies. AML legislation protects and strengthens the free market principles of the private sector. As part of the audit strategy, auditors must list all regulatory requirements in the countries in which the organisation does business. The United States of America Anti-Money Laundering measures are based on the Financial Action Task Force (FATF) recommendations, similar to the European Union (EU) 3rd Directive. The EU in its 4th Directive has made further measures from that of FATF, to seek to strengthen international co-operation and harmonise the approach to AML compliance across Europe.
