Risk Based Internal Audit And The Improvement Of AML System

With the accelerated opening process of global financial market,commercial banks,as an industry filled with high risks of money laundering,are faced with severe challenge to their survival and development.Modern commercial banks take a variety of risk control measures to prevent money laundering risk,among which internal audit proves the most effective.Internal audit enables the internal formation of supervision,control and revision upon management level and operation level,and conducts key check and evaluation on the rigor of internal control system and on the science of management system,so as to make timely detection of possible weak links and bugs existing in the anti-money laundering system and to remind managers to take necessary steps for correction as early as possible.As a type of effective mechanism and management tool,risk based internal audit is urgent to be widely adopted in commercial banks to improve their management level and prevent relevant risks.However,different historical and practical problems are currently hindering the development of commercial banks' risk oriented internal audit,so the function of risk management fails to play its full role.This paper explores the application status and constraints of domestic commercial banks' risk oriented internal audit by combining theory with cases,and attempts to summarize necessary conditions for the successful application of risk oriented internal audit and optimization of anti-money laundering system,which turns out to be a reference for the anti-money laundering practice of commercial banks.The essay based on a large number of relevant researches on anti-money laundering and internal audit,will start from basic definition of money laundering and anti-money laundering.Then will move on to the internal audit theory in anti-money laundering,including the objectives contents and the importance of internal audit.At the same time,the analyze of H bank's currently situation and existing problems will be held,aimed at find out the reasons and countermeasures with pertinence.The improvements will be held in six aspects: setting up anti-money laundering internal auditing departments;building up anti-money laundering performance assessment;detailing customer's risk level management;improving personnel's quality;designing outstanding audit procedure and strengthening the monitoring on new trading methods.