Risk Based Approach to Anti-Money Laundering (AML) & Combating Terrorist Financing (CTF)

Part of the Fraud Prevention and Financial Crime Training Week: Part 1: Risk Based Approach to Anti-Money Laundering (AML) and Combating Terrorist Financing (CTF) Part 2: FATCA Implementation Book both parts together to benefit from a 15% saving on the course fee. Risk Based Approach to Anti-Money Laundering (AML) and Combating Terrorist Financing (CTF) Attend this intensive and highly practical 3-day training course and learn the best practice techniques to: Design an effective Anti-Money Laundering Program to support your organization?s Compliance and regulatory obligations Establish and strengthen controls to combat terrorist financing through financial institutions Understand best practices and guidelines designed to detect, investigate, report, escalate and resolve red flags, money laundering, and terrorist financing issues 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 PLUS: Gain appropriate knowledge and learn definitive risk management strategies through simulation exercises, class lecture, and group work to design and execute effective Anti-Money Laundering and Anti-Terrorist Financing Programs and Policies Who should attend? This course has been specifically designed for the benefit of: 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 The course assumes a general familiarity with financial markets, instruments and financial services. Course background This course provides participants with comprehensive and detailed understanding of both the money laundering process and related terrorist financing operations, new schemes and technology used to launder money and finance terrorism, best practice approaches to combat the crimes of money laundering and terrorist financing, risk assessment methodology and follow up. Particular emphasis is placed on case study scenarios to investigate, escalate, and resolve these potential risks. Further, the course will review development and implementation of effective AML/CTF policies and programs. Methodology The training consists of classroom-based instruction, supplemented with case study and simulations.
Day 1 Setting the Stage: Anti-Money Laundering and Combatting Terrorist Financing Basics Current international cases, fines, and legal judgments AML/CTF success stories 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 Case Study and Simulation Exercise 1: Delegates will, through review of a case, be assigned roles (customers, business line, middle and back office, compliance and legal, regulators) to analyze transaction data for possible money laundering activity/terrorist financing, escalation, reporting, investigating, and resolution) Where It All Starts: The AML and CFT Rubric: Establishment The Anti-Money Laundering and CFT Program Design of an AML/CTF Policy Effective Elements of the AML/CTF Program Policy Identifying the Effective Elements Designation of an AML and CTF Compliance Officer (s) Auditing for AML and CTF: internal and external Ongoing training Due diligence and customer identification Scenario, control, and systems testing Supervision Reporting and information flow: suspicious activity reports Surveillance, systems, and investigations Staffing, credentials, experience, and characteristics Escalation Record keeping Day 2 Combating Terrorist Financing CTF Goal: to aggressively identify, escalate and deter terrorist organizations’ funding and transactions networks FATF Recommendations FATF Global Money Laundering and Terrorist Financing Threat Assessment (GTA) Risk Assessment Methodologies FATF: Inclusion vs Exclusion CTF Resources Intelligence analysis Sanctions administration Enforcement Financial regulatory action Policy expertise Implementation and Application of the Rubric Policies, Procedures, and Controls: Implementation Designation of an AML Compliance Officer Auditing for AML: internal and external Ongoing training Due diligence Customer identification Supervision Reporting and information flow: suspicious activity reports Surveillance, systems, and investigations Staffing, credentials, experience, and characteristics Escalation Record keeping 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 Case Study and Simulation Exercise 2: Response to Regulatory Review and Implementation of Follow Up Measures. Delegates will simulate A) regulator’concluding a review of a faulty AML Programme at a mid-sized financial institution and B) the financial institution’s response to the AML review and sanctions 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 Forensic Review of Surveillance and Investigation Dissecting an AML/CTF Investigation A day in the life of an AML/CTF surveillance team Identification of red flags Business line specific AML/CTF issues Technology and AML/CTF: technology-based schemes, and technology-based monitoring, surveillance, and detection Day 3 Know Your Customer Best Practices Policy statement Rationale Customer identification programme Application of the customer identification programme Covered customers Data collection: individuals, institutions, official/governmental organizations Verification: documentary vs non-documentary Logical consistency Additional measures Lack of verification Data from external financial institutions Service providers High risk accounts Special Topics Shell banks Politically exposed persons Correspondent banks and foreign banking relationships Enhanced due diligence Identity theft Charitable organizations Volume 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 Class Exercise and Simulation 3: Development of an AML Program Policy Round Robin: AML/CTF and Sanctions Regulation Development Course summary and close