Anti Money Laundering & Combating Financing Terrorism for Branches
The course will enlighten and enrich the knowledge of the audience from the basic concepts of AML and CFT to the latest tools and techniques along with the practical issues being faced by the front line managers/ offices i.e. the branches of financial institutions, the regulatory expectations and how to strike a balance between compliance of law and business development to meet the challenging targets.
The concept of money laundering regulations goes back to ancient times and is intertwined with the development of money and banking. Money laundering is first seen with individuals hiding wealth from the state to avoid taxation or confiscation or a combination of both. In the 20th century, the seizing of wealth again became popular when it was seen as an additional crime prevention tool. Regardless of the difficulty in measurement, the amount of money laundered each year is in the billions of US dollars and poses a significant policy concern for governments. As a result, governments and international bodies have undertaken efforts to deter, prevent, and apprehend money launderers. Financial institutions have likewise undertaken efforts to prevent and detect transactions involving dirty money, both as a result of government requirements and to avoid the reputational risk involved.
– Introduction to Money Laundering and Financing of Terrorism
Lesson 1: Introduction to Money Laundering and Financing of Terrorism - Define money laundering - Define financing of terrorism - Differentiate between money laundering and financing of terrorism - Modes/ types/ typologies of AML/ CFT.
Lesson 2: Legislations and Regulators - Name the legislations and regulators of money laundering and financing of terrorism - Guidelines on money laundering and financing of terrorism.
Lesson 3: AML / CFT in “Your Organization” and Its Governance - Explain the key components of “Your Organization” AML / CFT Policy and Operational Guidelines - Describe “Your Organization” Governance Structure to ensure compliance to AML / CFT requirements - Explain the roles and responsibilities of everyone in “Your Organization” to combat ML / FT.
Lesson 4: Customer Due Diligence and Customer Acceptance Policy - PR R-1: Customer Due Diligence - Explain the purpose of Customer Due Diligence (CDD) and Customer Acceptance Policy - Differentiate between CDD requirements for new customers and existing customers - List factors to be considered in identifying and assessing the risk profile of a customer / type of customer - Customer Risk Profiling and scoring at branches.
Lesson 5: Risk Based Approach, Enhanced CDD and Ongoing CDD - Identify higher-risk customers, businesses, transactions and locations - Differentiate between Enhanced Customer Due Diligence (ECDD) and Ongoing CDD - General Recommendations for EDD as per PRs - Explain the guidelines pertaining to record keeping and retention of record (PR – R-5).
Lesson 6: Trade based Money Laundering - Over invoicing/ under invoicing - General procedures to evaluate the trade items - Escalation process - Correspondent Banking (PR R-2).
Lesson 7: Red Flags On Suspicious Transactions & Cash Threshold Reporting - Wire Transfers (PR R - 3) - Identify red flag indicators - Explain Cash Threshold Reporting - Describe the process of Suspicious Transaction Reporting (PR R - 4) - Detailed discussion on Annexure II of PRs of AML/ CFT.
Lesson 8: Penalty for Non Compliance - State offences related to non-compliance with AML / CFT requirements - identify the penalty for offences related to non-compliance with AML / CFT requirements.
Lesson 9:Case Studies - What documentation to be obtained from customer – Striking a balance - Analyze cases related to ML / FT - Cite actual money laundering cases.