Anti Money Laundering

Anti Money Laundering (AML) and Countering the Financing of Terrorism (CFT) in Context

Money Laundering and Terrorist Financing – Definitions and Nature

• The nature of money laundering and terrorist financing
• How is money laundered?
• The money laundering process The limitations of the three-stage interpretation of money laundering

The International Context

• International initiatives to counter money laundering and terrorist financing and developments
• The Financial Action Task Force (FATF)
• The European Union l
• The International Monetary Fund
• The United Nations
• The Organisation for Economic Development (OECD)
• The Egmont Group of Financial Intelligence Units – a semi-governmental organisation
• International and regional bodies
• The interface between money laundering and corruption

International Anti Money Laundering and Counter Terrorist Financing Frameworks

• Development of domestic anti money laundering and terrorist financing models
• AML legislation and strategy
• Tax evasion as a predicate offence for money laundering
• The USA PATRIOT Act and US extraterritoriality

Laundering the Proceeds of Tax Evasion

• Taxes payable and conflict of laws rules that determine where taxes are paid
• Typical onshore anti-tax avoidance provisions
• New disclosure requirements designed to identify tax evaders
• Criminal liability for laundering the proceeds of tax evasion

Vulnerabilities of Products and Services

• Vulnerabilities of specific products and services
• Retail banking services
• Lending and credit
• Cyber-laundering, electronic payment systems and emerging technologies
• Internet gambling and land based casinos
• International trade and trade finance
• Wealth management
• Investment management services and securities
• Stockbroking, investment management and fund products
• Retail investment funds
• Life insurance and pensions
• General Insurance
• Money services businesses
• Non-financial professionals (lawyers and accountants)
• Trusts and corporate services

Terrorist Financing, Proliferation Financing and Sanctions

Terrorist Financing and Proliferation Financing

• The international strategy on terrorist financing
• The EU strategy on terrorist financing
• The UK’s counter terrorist financing strategy and legislation
• Characteristics and sources of terrorist financing
• Moving terrorist funds
• Proliferation financing and dual-use goods

Complying with Sanctions and Freezing Requirements

• What are sanctions?
• Why are sanctions relevant to the financial sector?
• Global sanctions framework
• The FATF Standards 2012
• European Union sanctions regime
• UK financial sanctions regime
• US financial sanctions regime
• Complying with financial sanctions regimes
• Designing a compliance framework
• Sanctions lists and screening
• Quality assurance and testing
• Internal communications and training

Designing a Comprehensive Anti Money Laundering and Combating Terrorist Financing Framework for a Financial Services Business

Concepts of Risk Management

• Key concepts of risk assessment
• Identification of money laundering and terrorist financing risks
• Countering the risk of terrorism financing
• Identifying and assessing risk
• The creation of a control library
• Measuring the effectiveness of controls
• Deliverables from the risk assessment

Implementing an AML and CFT Riskbased Approach

• The international standards and requirements
• Determining a risk-based strategy and approach
• Designing an AML and CFT strategy
• Identifying and managing specific money laundering risks
• Understanding the interrelated business risks
• Continuous review of the risk-based approach to AML/CFT

Risk-based Customer Due Diligence, Customer Risk Profiling and Monitoring

Customer Due Diligence (CDD)

• What is CDD?
• Taking a risk-based approach to CDD
• The value of CDD information
• Transparency and beneficial ownership requirements
• Managing high-risk situations
• Politically exposed persons (PEPs)
• Correspondent banking relationships
• Simplified Due Diligence in lower-risk situations
• Assessing money laundering risk in all other circumstances
• The information to be collected and verified
• Relying on third parties and accepting introduced business
• Customer review and updating CDD
• Compliance monitoring of the CDD process
• Retaining customer records

Escalation and Exit Strategies

• Escalation and exit – context
• Responsibilities of senior management
• Exiting relationships
• Good practice in exiting customers

Governance and Leadership

The AML/CFT Governance Framework

• Managing AML/CFT compliance risk
• Defining roles and responsibilities
• The role of senior management
• The role of the MLRO
• The multidisciplinary approach

Management issues for AML and CFT Policy

• Formulating a risk-based strategy and policy
• The need for a group-wide policy
• Content of a policy
• Defining and determining the risk-based approach for CDD policies
• Senior management commitment in to the policy
• Implementing and communicating AML and CFT compliance arrangements
• Drafting an AML/CFT handbook
• Other issues to consider

Culture and Training

• Creating an effective AML/CFT culture
• The importance of ethics and integrity
• Common cultural barriers
• Awareness and training
• Competence testing

Suspicious Activity/Suspicious Transaction Reporting and Dealing with the Authorities

Transaction Monitoring and Filtering Framework

• Requirements of the international standards
• Monitoring wire transfers
• Transaction records
• Strategic transaction monitoring and filtering programmes
• Identifying key risks
• Risk-based transaction monitoring
• Reviewing management information and key performance indicators

Recognition, Handling and Reporting Transactions

• The legal obligation to report
• The mandatory reporting requirement
• Currency transaction reporting
• Designing an effective internal reporting system
• The Nominated Officer’s evaluation process
• Making a suspicious activity report to law enforcement

Post-reporting Considerations

• Tipping off – Handling the risk of committing the offence
• Constructive trusteeship
• Responding to discovery and enforcement orders
• Terminating relationships
• Managing media enquiries
• Subsequent customer review techniques

Dealing with the Authorities

• Obtaining NCA consent
• Responding to informal requests for additional information
• Monitoring Production Orders and other court orders
• Legal professional privilege
• Fraud and International Cooperation Notices
• Restraint Orders
• Confiscation Orders
• Civil asset recovery
• Managing document retention