Financial Crime Prevention and AML Practices

Introduction:

The Anti-Money Laundering (AML) and Financial Crime Prevention course is designed to equip participants with the skills to support their organization in anti-money laundering (AML) and counter-terrorist financing efforts. This course emphasizes the efficient prevention, identification, and reporting of money laundering activities.

The curriculum covers regulatory aspects such as Know Your Customer (KYC), Customer Due Diligence (CDD), sanctions compliance management, and the operational role of a Money Laundering Reporting Officer (MLRO). Participants will also explore emerging industry practices and the financial crime risks associated with them.

This intensive and practical course ensures proficiency in AML processes, laws, and detection mechanisms. Participants will gain insights into financial crime risks, global regulations, jurisdictional laws, and frameworks for crime prevention.

The course also addresses the cash-driven nature of the financial services industry, its vulnerabilities, and anti-terrorism financing measures, including applicable policies for financial service providers.

Objectives:

Upon completion of this AML and financial crime prevention course, participants will be able to:

• Evaluate the stages of Money Laundering.
• Familiarize themselves with laws applicable to firms and banks.
• Understand the role of FATF in combating money laundering.
• Be aware of the penalties for non-compliance with AML legislation.
• Learn how AML and Counter-Terrorist Financing (CTF) measures mitigate financial crime risks.
• Define guidelines for firms and staff to prevent and manage Money Laundering and Terrorist Financing threats.
• Recognize and apply common AML and CTF procedures.
• Detect and report "red flags" associated with suspicious activities.
• Understand the impact of offshore financial centers on Money Laundering.

Training Methodology:

• Role Playing Exercises
• Scenario Analysis
• Practice Using AML Software
• Compliance Drills

Course Outline:

Unit 1: Anti-Money Laundering (AML) and Countering Terrorist Financing (CTF)

• Triggers for AML and CTF measures.
• Overview of Money Laundering and Terrorism Financing: Legal and Regulatory Perspectives.
• Differences and similarities between Money Laundering and Terrorism Financing.
• Stages and methods of money laundering.
• Signs of money laundering practices.
• Vulnerable businesses and services.

Unit 2: The International Organizations of Anti-Money Laundering (AML)/Countering Terrorist Financing (CTF)

• International approach to AML and CTF.
• Provisions and treaties for combating money laundering and terrorism financing.
• FATF’s role and functions.
• AML policies and procedures for customers.
• Local and international laws relevant to your jurisdiction.
• Roles and responsibilities in financial crime risk management.

Unit 3: Compliance Strategies

• Jurisdictional AML and CTF laws and regulations.
• Effective AML operations: Internal controls, procedures, and policies.
• Relations with authorities and regulators.
• Know Your Customer (KYC) and ID&V rules.
• Tipping-off and insider trading.
• Strategic management of client relations and human resources.
• Local and international legislative contributions.

Unit 4: Reporting and Investigating Suspicious Transactions

• Statutory obligations for reporting suspicious transactions.
• Identifying and reporting suspicious transactions.
• Understanding high-risk indicators.
• Role of the MLRO.
• Maintenance of accurate and comprehensive records.
• Responsibilities of firms, banks, and individuals.
• Establishing monitoring procedures.

Unit 5: Detection Methods for Suspicious Money Laundering

• Prevention, detection, and due diligence.
• Risk alerts and risk assessments.
• KYC and Customer Due Diligence (CDD) procedures.
• Handling Politically Exposed Persons (PEPs).
• Screening and best practices for firms and banks.
• Sanctions and their implications.