Introduction
Anti-Money Laundering (AML) refers to the laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. Financial institutions and many businesses must follow strict AML formatting requirements when filing reports, documenting customer information, and maintaining records. This cheat sheet provides essential guidance on AML formatting standards to ensure compliance, reduce regulatory risk, and help combat financial crime.
Core AML Documentation Requirements
Customer Due Diligence (CDD) Documentation
| Documentation Type | Required Format | Details to Include |
|---|---|---|
| Customer Identification | – Full legal name (no abbreviations)<br>- Standardized date format (YYYY-MM-DD)<br>- Addresses in complete form | – First, middle (if applicable), last name<br>- DOB with 4-digit year<br>- Country codes using ISO standards (e.g., US, GB) |
| Identification Documents | – High-resolution color scans (300+ DPI)<br>- PDF or TIFF format<br>- File naming: [DocType][CustomerID][Date].pdf | – Government-issued photo ID<br>- Both sides of ID cards<br>- Certification of true copies where applicable |
| Proof of Address | – Documents less than 3 months old<br>- Complete address with postal code<br>- PDF format | – Utility bills, bank statements<br>- Government correspondence<br>- No PO boxes as primary address |
| Business Documents | – Original language with certified translation<br>- Company registry numbers in standard format<br>- PDF format for all incorporation documents | – Certificate of incorporation<br>- Register of directors/shareholders<br>- Ownership structure charts |
Suspicious Activity Report (SAR) Formatting
| SAR Component | Format Requirements | Notes |
|---|---|---|
| Entity Information | – Legal names only (no DBA names)<br>- Standardized identifier numbers (EIN, SSN)<br>- Complete physical address | – Include all known identifiers<br>- Standardize phone formats with country codes<br>- Separate fields for each address component |
| Transaction Details | – Exact amounts (no rounding)<br>- ISO currency codes (USD, EUR, etc.)<br>- Date/time in 24-hour format with timezone | – Include all relevant transaction IDs<br>- Document origination and destination<br>- Note all involved financial institutions |
| Suspicious Activity | – Categorize using official typology codes<br>- Chronological narrative structure<br>- Factual language (avoid speculation) | – Use approved activity codes<br>- Document pattern timeframes clearly<br>- Reference supporting documentation |
| Supporting Evidence | – Logical file naming convention<br>- Cross-referenced to narrative<br>- Indexed for easy reference | – Maintain chain of custody documentation<br>- Time-stamp all evidence files<br>- Maintain consistent annotation style |
FinCEN Filing Format Requirements
Currency Transaction Reports (CTRs)
| Field | Format | Example |
|---|---|---|
| Individual Names | Lastname, Firstname Middle | SMITH, JOHN DAVID |
| Business Names | Legal name as registered | ACME CORPORATION INC. |
| SSN/TIN | XXX-XX-XXXX or XX-XXXXXXX | 123-45-6789 |
| Addresses | Street, City, State/Province, Country, ZIP/Postal | 123 MAIN ST, NEW YORK, NY, US, 10001 |
| Amounts | Exact to cents, no commas | 10250.75 |
| Dates | YYYYMMDD | 20240515 |
| Occupation | Specific job title, not general field | SENIOR ACCOUNTANT (not “Finance”) |
| ID Numbers | No spaces or special characters | G123456789 |
Suspicious Activity Reports (SARs)
| Section | Formatting Guidance | Best Practice |
|---|---|---|
| Part I: Subject Information | – One subject per section<br>- Complete all applicable fields<br>- Use UNKNOWN only when necessary | – Include all known aliases<br>- Document verification method<br>- Cross-reference related parties |
| Part II: Suspicious Activity Information | – Select all applicable activity types<br>- Use specific date ranges (not “ongoing”)<br>- Enter exact amounts | – Document pattern start/end dates<br>- Include all relevant financial institutions<br>- Note all account numbers involved |
| Part III: Financial Institution Information | – Legal registered name<br>- Primary regulator information<br>- All branch locations involved | – Include point of contact details<br>- Document internal reference numbers<br>- Note previous related filings |
| Part IV: Suspicious Activity Narrative | – Clear chronological order<br>- 5 W’s format (who, what, when, where, why)<br>- No unnecessary PII | – Begin with summary paragraph<br>- Avoid jargon and abbreviations<br>- End with reason for suspicion |
AML Record-Keeping Formats
Transaction Records
| Record Type | Format Requirements | Retention Period |
|---|---|---|
| Wire Transfers | – Complete originator/beneficiary information<br>- Transaction reference numbers<br>- Intermediary banks identified | 5 years from transaction date |
| Cash Transactions | – Source of funds documentation<br>- Purpose of transaction<br>- Denominations noted for large cash | 5 years from transaction date |
| Electronic Payments | – IP address and device information<br>- Payment processor details<br>- Timestamp with timezone | 5 years from transaction date |
| Trade Finance | – Underlying commercial documents<br>- Shipping information<br>- Goods/services description with codes | 5 years from transaction completion |
Customer Risk Assessment Documentation
| Component | Format | Details |
|---|---|---|
| Risk Scoring | – Numerical score (e.g., 1-100)<br>- Risk category (High/Medium/Low)<br>- Date of assessment | – Document calculation methodology<br>- Include all risk factors considered<br>- Note overrides with justification |
| Enhanced Due Diligence | – Structured interview format<br>- Source of wealth documentation<br>- Relationship mapping | – Include third-party verification sources<br>- Document adverse media screening<br>- Note PEP status and relationship details |
| Ongoing Monitoring | – Activity review frequency<br>- Transaction thresholds<br>- Deviation parameters | – Document baseline expected activity<br>- Note monitoring technology used<br>- Record review outcomes |
Common AML Software Export/Import Formats
| System Type | Preferred Formats | Notes |
|---|---|---|
| Transaction Monitoring | – CSV with defined headers<br>- XML with schema definition<br>- JSON with specified structure | – Include system-generated alert IDs<br>- Document filtering criteria<br>- Maintain all original data fields |
| KYC/CDD Systems | – PDF for documents<br>- CSV/Excel for structured data<br>- XML for system transfers | – Maintain audit trail metadata<br>- Include approval workflow documentation<br>- Document version control |
| Sanctions Screening | – Original name format<br>- Structured hit reports<br>- Decision documentation | – Document screening algorithm<br>- Include match scores<br>- Note false positive rationale |
| Regulatory Reporting | – E-filing XML formats<br>- Batch filing schemas<br>- Acknowledgment receipts | – Maintain submission receipts<br>- Document validation results<br>- Note correction filings |
AML Data Quality Standards
| Data Element | Quality Standard | Validation Method |
|---|---|---|
| Names | – No special characters<br>- Consistent capitalization<br>- Standard transliteration for non-Latin names | – Name parsing validation<br>- Reconciliation with ID documents<br>- Transliteration standards (e.g., ICAO) |
| Addresses | – Standardized postal format<br>- Country-specific validation<br>- Complete all address fields | – Postal validation services<br>- Physical existence verification<br>- Cross-reference with documentation |
| Identification Numbers | – Check-digit validation<br>- Format-specific to issuing country<br>- No special formatting characters | – Algorithm validation<br>- Issuing authority verification<br>- Pattern matching |
| Transaction Data | – Balanced debits/credits<br>- Consistent currency representation<br>- Complete routing information | – Transaction reconciliation<br>- Currency code validation<br>- Payment route verification |
Step-by-Step AML Documentation Process
1. Customer Information Collection
- Obtain complete identification information using standardized forms
- Capture all required fields in specified formats
- Validate data against acceptable identification documents
- Convert all documents to required digital formats
- Index and catalog all customer information
2. Risk Assessment Documentation
- Calculate initial risk score using approved methodology
- Document all risk factors and their weights
- Format justifications for risk classification
- Document required level of due diligence
- Create audit trail of approval process
3. Transaction Monitoring Documentation
- Record baseline expected activity in structured format
- Document monitoring parameters and thresholds
- Format alert generation criteria
- Structure investigation notes in consistent format
- Document disposition decisions with rationales
4. Suspicious Activity Reporting
- Gather all required information in specified formats
- Structure narrative following required format
- Document supporting evidence with cross-references
- Format filing according to regulatory requirements
- Maintain confirmation of submission and acknowledgment
Common Challenges and Solutions
| Challenge | Solution |
|---|---|
| Inconsistent name formats | Implement standardized parsing rules and validation at data entry |
| Incomplete address information | Use address verification services and require structured input fields |
| Poor quality document scans | Establish minimum DPI requirements and use document validation technology |
| Inconsistent transaction categorization | Develop and enforce structured categorization taxonomy with training |
| Missing beneficial ownership information | Create standardized ownership structure templates and validation process |
| Unstructured investigation notes | Implement template-driven investigation documentation system |
| Non-standardized risk scoring | Develop quantitative risk scoring model with clear documentation requirements |
| Regulatory format changes | Establish update monitoring process and rapid implementation procedures |
Best Practices for AML Documentation
Data Quality Management
- Implement front-end validation for all data entry points
- Establish data quality metrics and regular auditing
- Create data remediation procedures for legacy information
- Document data lineage for all AML-related information
- Standardize data formatting across all systems
Documentation Standards
- Create templates for all common AML documents
- Develop style guides for narrative sections
- Establish consistent file naming conventions
- Use standardized abbreviations and terminology
- Implement version control for all documentation
System Integration
- Define standard data exchange formats between systems
- Document mapping of fields across different systems
- Establish reconciliation procedures for system-to-system transfers
- Create audit trails for all automated data processing
- Develop data quality gates between systems
Resources for Further Learning
Regulatory Guidelines
- FinCEN BSA E-Filing Electronic Filing Requirements
- FATF Recommendations on Standardized AML Approaches
- Wolfsberg Group AML Principles for Correspondent Banking
- JMLSG Guidance on the Risk-Based Approach
Industry Standards Organizations
- International Organization for Standardization (ISO) – ISO 20022 for financial messaging
- Society for Worldwide Interbank Financial Telecommunication (SWIFT) – Message formats
- International Bank Account Number (IBAN) Registry
- Legal Entity Identifier (LEI) Regulatory Oversight Committee
AML Software Documentation
- Oracle FCCM Documentation Library
- NICE Actimize AML Documentation
- LexisNexis Bridger Insight XG Format Guide
- Refinitiv World-Check Data Format Guidelines
Professional Certifications
- Association of Certified Anti-Money Laundering Specialists (ACAMS)
- Certified Financial Crime Specialist (CFCS)
- ICA International Diploma in Anti Money Laundering
- CAMS-Audit Advanced Certification
Remember: Proper formatting of AML documentation not only ensures regulatory compliance but also improves the effectiveness of financial crime detection and prevention efforts. Consistent, accurate, and structured information is essential for both internal controls and regulatory reporting.