Fundamentals of AML/CFT

Fundamentals of AML/CFT

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
• Risks and methods of money laundering
  • Using banking systems
  • Using new payment methods
  • Using charities or non-profit organisations
  • Trade based money laundering
• Process of Terrorism Financing

Module 3: Brief Overview of 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

Module 4: Preventive Measures

• Understanding preventive measure through Customer Due Diligence (CDD) / Know Your Customer (KYC)
• Beneficial Owner
• Politically Exposes Persons (PEP) / Reputationally Exposed Persons (REPs)
• Sanction Screening
  • 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)