Introduction

This AML-CFT training program is designed to provide participants with a foundational understanding of both global and local frameworks for combating money laundering, terrorist financing, and financial crimes. It covers regulatory mechanisms and sanctions from various organizations and legal authorities, with a focus on real-world risks associated with business activities, including evolving cybercrime trends and their connections to money laundering.

In addition to theoretical knowledge, the program offers practical applications through case studies and risk assessment assignments, which enhance participants' comprehension of the subject matter.

By attending this training, participants will be equipped with the knowledge and tools necessary to identify, prevent, and respond to money laundering and terrorism financing activities.

Program Objectives

• Familiarize yourself with the components of the AML-CFT regulatory ecosystem.
• Gain an understanding of the global and local frameworks designed to combat money laundering, terrorist financing, and other financial crimes.
• Learn about essential regulatory mechanisms and the legal obligations related to sanctions.
• Explore emerging trends in cybercrime and their connections to money laundering.
• Study case studies and scenarios to reinforce the application of AML-CFT theory and practice.

Expected Output

• Comprehensive Understanding: Gain a deeper understanding of AML and CFT regulations, trends, and best practices.
• Risk Mitigation: Learn how to identify, assess, and mitigate the risk of financial crimes.
• Improved Compliance: Ensure that your organization stays compliant with evolving global AML/CFT laws and regulations.
• Practical Skills: Develop practical skills for identifying suspicious activity, filing reports, and managing AML/CFT risks in real-world scenarios.
• Professional Development: Enhance your career by gaining expertise in a highly regulated and critical area of financial crime prevention.

Target Delegates

• Compliance Officers: Professionals responsible for ensuring that an organization adheres to AML/CFT regulations.
• Risk Managers: Individuals who assess and mitigate risks related to financial crime.
• Legal Advisors: Lawyers advising organizations on legal obligations related to financial crime.
• Bankers and Financial Analysts: Professionals working in financial institutions who need to understand the regulatory environment and how to prevent money laundering and terrorist financing.
• Auditors: Internal or external auditors involved in reviewing an organization’s AML/CFT controls.

Planned Program

Day 1:

Introduction to AML & CFT

• What is Money Laundering (ML)?: Definition and understanding of money laundering, its stages (placement, layering, and integration), and its impact on the global financial system.
• What is Terrorist Financing (TF)?: Explanation of terrorist financing, including how funds are raised and channeled for terrorist activities.
• Global Impact of Money Laundering and Terrorist Financing: The effects of money laundering and terrorist financing on the economy, businesses, and society.
• The Role of Financial Institutions and Professionals: Understanding the role of financial institutions, banks, and financial services professionals in detecting and preventing financial crime.

Legal and Regulatory Framework

• Key International Standards:
• • Financial Action Task Force (FATF): Understanding the FATF’s 40 recommendations and their role in shaping global AML/CFT standards.
  • Basel Committee on Banking Supervision (BCBS): The role of the Basel guidelines in preventing financial crime.
• National and Regional Regulations:
• • Overview of major national and regional AML/CFT regulations, such as:
  • • The USA PATRIOT Act in the U.S.
    • EU Anti-Money Laundering Directives (e.g., 4th and 5th Anti-Money Laundering Directive).
    • FATF Compliance Laws in different jurisdictions.
  • Understanding the Bank Secrecy Act (BSA), Dodd-Frank Act, and other country-specific laws.
• Know Your Customer (KYC) Requirements: The importance of customer identification and verification processes in preventing money laundering and terrorist financing.

Money Laundering and Terrorist Financing Typologies

• Common Money Laundering Schemes:
• • Layering and Structuring: How criminals attempt to disguise the origin of illicit funds.
  • Shell Companies and Offshore Accounts: Use of complex financial structures to hide the origin and ownership of illicit funds.
  • Trade-Based Money Laundering: Methods where criminals use trade transactions to hide illicit flows of money.
  • Real Estate Money Laundering: Use of real estate transactions to launder money.
• Terrorist Financing Techniques:
• • Small-Scale Transfers: Terrorists often use small, difficult-to-trace amounts to finance operations.
  • Charities and Non-Profit Organizations: The abuse of non-profits and charitable donations to fund terrorism.
  • Hawala Systems: The informal value transfer system often used for terrorist financing.
• Red Flags and Warning Signs: Identifying suspicious activities indicative of money laundering or terrorist financing.

Day 2

AML & CFT Risk Assessment

• Risk-Based Approach: Understanding how to apply a risk-based approach to AML/CFT compliance.
• Identifying Risk Factors: Key factors that increase the risk of money laundering or terrorism financing, such as customer type, geographical location, products and services, and transaction volumes.
• Customer Risk Profiling: How to assess the risk posed by different customers and transactions.
• Assessing and Managing AML/CFT Risk: Tools and strategies to mitigate risks within financial institutions and businesses.

Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD)

• CDD Procedures: Understanding the importance of Customer Due Diligence, including verifying customer identity, understanding the purpose of the business relationship, and monitoring transactions.
• Know Your Customer (KYC) Procedures: Best practices for collecting and verifying customer information to ensure AML/CFT compliance.
• EDD for High-Risk Customers: How to implement Enhanced Due Diligence (EDD) measures for high-risk individuals, politically exposed persons (PEPs), and high-risk countries.
• Ongoing Monitoring: The need for continuous monitoring of transactions and account activity to detect suspicious behavior.

Suspicious Activity Reporting and Investigation

• Suspicious Transaction Monitoring: How to set up systems and procedures to monitor transactions for suspicious activity.
• Red Flags in Transaction Monitoring: Common indicators that a transaction may be suspicious, including large cash deposits, rapid movement of funds, and inconsistent behavior with the customer’s profile.
• Filing Suspicious Activity Reports (SARs): The process of filing SARs to the relevant authorities, including regulatory requirements and timeframes.
• Internal Investigations: How to conduct internal investigations when suspicious activities are detected.
• Whistleblowing: Encouraging and managing whistleblower reports of potential AML/CFT violations.

Day 3

AML & CFT Compliance Programs

• Establishing a Compliance Program: Best practices for designing and implementing an AML/CFT compliance program, including:
• • Senior management responsibility.
  • Setting policies and procedures.
  • Training employees.
  • Ongoing risk assessments and audits.
• AML/CFT Governance: The structure and role of the Compliance Officer, Board of Directors, and other senior executives in overseeing AML/CFT compliance.
• Regulatory Reporting Requirements: Understanding reporting obligations to regulatory authorities, including periodic AML/CFT audits and filings.
• AML/CFT Policies and Procedures: Creating policies and procedures to ensure compliance with AML and CFT regulations.

AML & CFT Technology and Tools

• AML Transaction Monitoring Systems: Overview of technology and software used to monitor and analyze transactions for suspicious activity.
• Automated Screening Tools: How to use automated tools to screen customers and transactions against lists such as OFAC (Office of Foreign Assets Control), FATF, and PEP lists.
• Artificial Intelligence (AI) in AML: How AI and machine learning can enhance AML efforts, improving transaction monitoring and fraud detection.
• Blockchain and Cryptocurrencies: Understanding the risks posed by cryptocurrencies and how blockchain technology is being used to combat AML/CFT challenges.

Day 4

Sanctions Compliance and International Cooperation

• Sanctions Laws and Regulations: Understanding the impact of global sanctions regimes (e.g., the U.S. OFAC sanctions, UN sanctions) and the role of financial institutions in ensuring compliance.
• Cross-Border Cooperation: The importance of international cooperation in tackling money laundering and terrorist financing, including cooperation among regulators, law enforcement, and financial institutions.
• Sanctions Screening and Compliance: Best practices for sanctions screening and ensuring that customers and transactions are compliant with international sanctions.

AML & CFT Challenges and Emerging Trends

• Technological Advancements: The role of new technologies (such as blockchain, digital wallets, and peer-to-peer payment systems) in money laundering and terrorist financing and how to address these risks.
• Cryptocurrency and Digital Assets: How AML/CFT frameworks are evolving to address the risks associated with cryptocurrencies and digital assets.
• Global Regulatory Landscape: How different jurisdictions are approaching AML/CFT compliance and the ongoing evolution of international regulatory frameworks.
• Human Trafficking and Other Financial Crimes: The links between AML, human trafficking, and other financial crimes.

Day 5

Case Studies and Practical Applications

• Real-World Examples: Reviewing case studies of major money laundering schemes, terrorist financing operations, and financial crimes.
• Lessons Learned: What went wrong, how detection failed, and how organizations can avoid similar risks in the future.
• Practical Exercises: Hands-on scenarios where participants can practice identifying red flags, monitoring transactions, and filing Suspicious Activity Reports (SARs).

Training Approach

This training is delivered by our experienced trainer who is an expert in his respective fields. The instruction includes a combination of practical activities, presentations, group work, and case studies. Participants will also receive training notes and additional reference materials.