Protection Against the Risks of Money Laundering and Terrorist Financing
Course Overview
Money laundering is a clear and present danger that globally continues to pose a significant threat to governments, financial institutions, and businesses alike. As a result, financial institutions, banks, and organizations around the world are required to set in place a BSA/AML Compliance Program.
An Anti-Money Laundering Compliance Program defines all the efforts and steps taken by any organization in order to keep in line with regulatory AML policies in their legislative and legal environment (national and international AML laws). An AML Compliance Program is aimed at keeping in check illicit financial activities, such as: fraud, money laundering, and terrorist financing. The Program supports businesses to keep track of transactions and flag off any illegal financial activities to the concerned authorities.
The governance and success of an AML Compliance program rests upon the Compliance team, who are the second line of defence, the “behind-the-scenes-operators”. The Compliance team develops policies and procedures, devises templates, reports, tuning mechanism, customer questionnaires and requirements, alongside the technologies necessary to streamline KYC and AML processes. The team is responsible for setting risk categories and monitoring ongoing Suspicious Activities Reporting. They are also responsible for tracking any wilful or unwilful violations of oversight in following the set national regulations that may pose a threat for the organization.
Organizations face hefty penalties or fines for non-compliance. Keeping up with AML compliance can be difficult, especially for uninformed and not-updated compliance teams. A successful compliance team is aware of the latest regulations and laws, both regional and international. A well informed and appraised Compliance team stays informed and keeps track of changing regulations, as well as the changing nature of businesses, regional jurisdictions, their risk profiles, systems and processes.
The most important factor to build an effective AML Compliance Program is in fundamental regulatory and legal understanding, executed by knowledgeable professionals who are qualified to create a system that ensures compliance at each organizational level. This masterclass for Compliance professionals is aimed to cover all aspects from the basics to advance of Anti-Money Laundering compliance creation, governance, tuning, upgrading and efficacy.
Course Objectives
The key priority for AML compliance is outlining definitive corporate policies for requisite compliances such as BSA/AML, in order to minimize the risks of an organization being used for illicit financial activities by its customers. An organization that is aiming to create an enterprise-wide climate for compliance, or having a system that is robust for compliance adherence, must successfully keep checks on illegal activities, such as money laundering and terrorist financing. A well knowledgeable compliance team leader and their team are aware of both the legal and fiscal repercussions of being involved in or enabling such dealings.
After completing this course, the Compliance team and compliance representatives from each department will learn all facets of running a good AML Compliance Program that includes:
- Designing and running Internal operations and regulations governance.
- Customer vetting, on boarding and processing policies.
- Account operations monitoring, general reviews and reconciliations.
- Transaction monitoring, case detection, reporting protocol, SAR/STR/CTR filing.
- Developing robust AML Compliance Standards.
- Analysing legal obligations and potential risks.
- Working knowledge of acquiring and adopting adequate technology.
- Developing an industry/organization-specific training material.
- Overview of legal advisory for consulting and defence.
- Understanding the independent audit process and the importance of conducting routine checks is an effective way, to understand the shortcomings of their risk assessment and compliance program.
Training Methodology
This is an interactive training course and will consist of the following training approaches:
- Lectures
- Webinars/Seminars & Presentations
- Group Discussions
- AML KYC Policy Documentation Analysis
- Compliance Team Focus Group Discussions
Organizational Benefits
- Reduce the risk of non-compliance.
- Steer the organizations away from heavy fines, penalties and reputation damage, which, in turn, result in loss of customers and revenue.
- Keep a check on the illicit use of the organization and linkage to criminal financial networks.
- Monitor, detect and report suspicious activities that indicates possible money laundering.
- In all ensure compliance that is effective, dynamic, scalable, and adaptable.
- Designing and implementing an effective program, that refers to a set of policies and procedures that work for the organization’s unique AML requirements.
- The resultant effect of this course is a strong foundation of internal values to guide employees at each and every level of the organization.
- Learn organizational vulnerabilities from the point of view of risk factors like nature, diversity, complexity, scale, volume, and size of its business and operations.
- Set Internal privacy and security guidelines.
- Gain an understanding in streamlining Audit function of the organization with well-tuned systems.
Personal Benefits
- Understanding the movement in a compliance environment and enhance your career by selecting to master one of the branches in this vast subject.
- Career advancement into AML/BSA compliance.
- Candidates with a proper hold on the subject matter can be considered for more responsible positions in the organization.
- Compliance responsibility is usually carried out by the Compliance Officer, also seen as an advisor to the senior management and Board Members.
- Understand the financial crime landscape and implement it in personal life and financial dealings to stay safe and legally secured.
- As the Designated Director, Compliance Officer or the MLRO have personal liabilities in case of non-compliance; knowing the compliance in-depth is obviously of personal value.
- Become an expert with knowledge of compliance regulations, knowledge of important regulatory databases, compliance analysis methods, and knowledge of internal risk audits.
Who Should Attend?
This course offers complete knowledge in AML/KYC regulations, compliance, assessment and management. The following individuals or groups will benefit from it:
- Designated Director / MLRO / Compliance Officer
- Compliance personnel
- Legal team / retained-external counsel
- Compliance representatives or appointed point of contact from each department
- Internal Auditors
- Financial advisors to the Board of Directors
- HNI operations Head of Department
- Human Resource Head of Department
- Marketing Head of Department
- Private Banking and relationship Head of Department
Course Outline
DAY 1
Setting an AML/CFT Compliance Program
- AML/CFT Program
- The Elements of an AML/CFT Program
- Structuring the Compliance Function
- A Programme of Internal Policies, Procedures and Controls
- Assessing AML/CFT Risk
– AML/CFT Program
– AML/CFT Training
– Establishing a Culture of Compliance
Risk Assessment
- Assessing AML/CFT Risk
- Maintaining an AML/CFT Risk Model
- Understanding AML/CFT Risk
- AML/CFT Risk Scoring
- Assessing the Dynamic Risk of Customers
- AML/CFT Risk Identification
– Customer Type
– Geographic Location
– Products/Services
DAY 2
The Designation and Responsibilities of a Compliance Officer
- Appointment of Designated Director
- Communication
- Delegation of AML Duties
- Compliance Officer Accountability
Staff Training
- AML/CFT Training
– Components of an effective training program
– Who to Train?
– What to Train on?
– How to Train?
– When to Train?
– Where to Train?
DAY 3
Vendor Services Procurement
- External Audit
- Training & Testing
- MLRO Support
- On-going consulting – New circular interpretations
- Technology (Procurement)
- Risk Assessment System – Transaction Monitoring System – Sanctions Screening System – Beneficial Ownership Tracker
Independent Audit
- Evaluating an AML/CFT Program
- All the governance parameters
- Compliance Officer’s Management
- Compliance Structure
- Compliance Staff and efficacy
- Compliance function efficacy, procedures and documentation
- Adherence to the Recommended AML/BSA program
DAY 4
Sanctions Screening
Economic Sanctions (AFRICAN UNION | UNITED NATIONS | EUROPEAN UNION | UNITED STATES)
- Sanctions List Screening
- Politically Exposed Persons Screening
- Beneficial Ownership
- Know Your Employee
Sources of Investigations
- Regulatory recommendations or Official findings
- Transaction Monitoring
- Referrals from customer-facing employees
- Internal Hotlines
- Negative media information
DAY 5
Conducting the Investigation
- Utilizing the internet when
- Conducting financial investigations
- STR Decision-Making Process
- Filing an STR
- Quality Assurance
- STR filing oversight/escalation
- Closing the Account
