AML-CFT Risk Based Approach
This course will give you a solid understanding of the best practices and guidelines designed to detect, investigate, report, escalate and resolve red flags, money laundering, and terrorist financing issues.
It will also explain how to design an effective Anti-Money Laundering Program to support your organizations Compliance and regulatory obligations
· Establish and strengthen controls to combat terrorist financing through financial institutions
· Understand money laundering and terrorist financing processes
· Identify both common and uncommon red flags and questionable behaviour
· Be aware of the dangers of money laundering to clients, your organization and yourself
· Be well prepared to help prevent criminals from using your firm to launder money and facilitate terrorist financing
Anti-Money Laundering and Combatting Terrorist Financing Basics
· Current international cases, fines, and legal judgments
· Corporate and economic implications of AML/CTF
· Key terms, definitions, and institutional differences
· Legal and regulatory background to AML/CTF
The Money Laundering Process
· Placement, layering, and integration
· Red flags: unique to each business line
· Relationship to terrorist financing and blocked assets
· Roles: who’s responsible for what?
Terrorist Financing Operations
· Funds generation
· Transactions
· Legal and illegal means
· Relationship to money laundering
Risk Based Approach
· Geography and country risk
· Business risk
· Product risk
· Reputational risk
· Transaction risk
· Client risk
· Process risk
Suspicious Activity Reporting
· Trigger areas
· Information flows
· Preventing terrorist financing through AML
Danger Zones: Failures
· AML/CTF compliance policy
· Faulty testing
· Unsatisfactory training and non-compliance with training requirements
· Insufficient resources: systems, technology, and staff
· Lack of follow up: connect the dots
Organizational Settings
· Laws, rules and regulations
· International organizations
· Information sharing
· Industry organizations
Know Your Customer Best Practices
· Policy statement
· Rationale
· Customer identification programme
· Data collection: individuals, institutions, official organizations
· Verification: documentary vs non-documentary
· Logical consistency
· Additional measures
· Lack of verification
· Data from external financial institutions
· Service providers
· High risk accounts
· Politically exposed persons
· Correspondent banks and foreign banking relationships
· Enhanced due diligence
· Charitable organizations
Monitoring Customer Relationships
· Consistency
· Pattern analysis
· Systems
· Aggregation
· College knowledge vs flagrant indifference
· Risk rating
· Monitoring credit relationships
AML/CTF IN Practice: Implications for Business Lines
· Internet gambling
· Insurance fraud
· Tax evasion
· Wire transfers
· Check collection
· Funds transfer and money transmittal
· Card dystems
Currency and monetary systems
Middle and Back Office Personnel, Front Office Sales Personnel, Compliance, Risk, Governance Officers, Regulators, Career Switchers into Compliance, Administrative Officers, Supervisors, System developers, Risk managers, Reporting specialists.