Certificate course in Anti-Money Laundering and Countering Financing of Terrorism

Certificate course in Anti-Money Laundering and Countering Financing of Terrorism

Introduction

Money laundering (ML) and financing of terrorism (FT) have been one of the major risks facing many countries. Financial institutions across the world are tasked to help mitigate these risks as many criminals tend to misuse them to achieve their objectives of laundering money or funding terrorism. The Financial Action Task Force (FATF) requires its member countries to implement its recommendations and it is very essential for the member countries to ensure compliance with the recommendations. Failure to comply with the FATF recommendations have various ramifications. Hence, it becomes essential for the banking professionals to have a sound knowledge of AML-CFT and related regulations and putting the risk mitigation measures in practice.

Hence, considering the situation, the course presented has been designed to help industries to develop such knowledge, skill and techniques that can lead them to tackle this regime systematically, effectively and efficiently, from policy level to operations.

Course Objectives

• To equip institution with highly competent human resource as required by current dynamic AML/CFT regime
• To understand impact of new technologies on AML/CFT
• To strengthen AML/CFT product functionalities by gaining an understanding of banking domain.

Module 1: Overview of Money Laundering and Terrorism Financing

• What is Dirty Money
• Concept of Money Laundering (ML) and Terrorism Financing (TF)
• Difference between ML and FT

Module 2: Stages and Typologies of Money Laundering and Terrorism Financing

• Three stages in ML
  • Placement
  • Layering
  • Integration
• Impact of Money Laundering
• Risks and methods of money laundering
  • Using banking systems
  • Using non-banking financial institutions
  • Using new payment methods
  • Using non-financial businesses and professions
  • Using charities or non-profit organisations
  • Using on-line gaming and sports
  • Trade based money laundering
• Process of Terrorism Financing

Module 3: Compliance standards/regulation for anti-money laundering (AML) and combating financing of terrorism (CFT)

• Financial Action Task Force (FATF) recommendations
• Basel Committee on Banking Supervision (BCBS)
• European Union 5^th Directive and rules
• Banking Secrecy Act, US Patriot Act, OFAC requirements and OFAC sanction programs
  • SDN List and 314(a) List
  • Beneficial Owner and 50% rule
  • Travel rule
• Wolfsberg group
• Regional standards
• How regulators assess compliance
• Consequences of non-compliances
  • Fines and penalties
  • Reputational risk

Module 4: Preventive Measures

• Understanding preventive measure through Customer Due Diligence (CDD) / Know Your Customer (KYC)
  • Simplified CDD
  • Standard CDD
  • Enhanced CDD
  • Ongoing CDD
• Beneficial Owner
• Politically Exposes Persons (PEP) / Reputationally Exposed Persons (REPs)
• Customer risk profiling and acceptance policy
• Sanction Screening
  • Meaning and types of screening:
    • Geographical Sanctions
    • Targeted Sanctions
  • Using technology for screening
  • SWIFT sanction

Module 5: Monitoring, Detecting and Reporting ML / TF Transactions

• Identifying suspicious transactions / activities
• Red flags / Early warning signals
• Use of technology for monitoring
  • Rule Engine
  • Profiling
  • Peer Groups
  • Link / Network Analysis
  • Neural Network / Artificial Intelligence
  • Reporting requirements
• Suspicious Transaction Reporting (STR)
• Cash Transaction Reporting (CTR)
• Investigation, Confidentiality and Tipping off

Module 6:New Technologies and AML-CFT

• Using Robotic Process Automation (RPA) and Intelligent Character Recognition
• AML-CFT and Blockchain / Cryptocurrency
• Impact of EMV tokenization (cards) on AML-CFT compliance

Module 7: AML-CFT Compliance Function in Financial Institutions

• Risk Based Approach and Internal Control Framework / Risk Register
• Policies and procedures for AML-CFT compliance
• AML-CFT compliance program
  • Objectives
  • Assessing risk and developing a risk scoring model
  • Elements of risk
    • Customer
    • Product/services
    • Channels
    • Geo-location / Jurisdiction
    • Process
    • Technology