Anti-Money Laundering and Counter Terrorist Financing - Awareness of the Risks to Business and individuals in the 21st Century

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Course Overview

Money laundering is a financial crime often talked about but rarely understood. The third Money Laundering Directive takes an explicitly risk-based approach and, as this will be enacted into UK law in December 2007, it is now imperative that the threats are understood. A number of factors combine to make it one of the most significant risks facing all businesses (not only financial services companies) in the new century, namely

• The increasingly sophisticated methods of organised criminals to hide or launder the proceeds of crime
• The global nature of business, which makes it increasingly difficult to 'know your customer'
• The high profile given to the financing of terrorism following 9/11

However, it is not only businesses that are risk. The Proceeds of Crime Act places personal responsibility on individuals who may be held criminally liable for their actions or their negligence.

Audience

Anybody in a financial or legal position.

Skills Gained

This interactive course provides a comprehensive guide to the development of anti-money laundering and counter-terrorist financing law and regulations both in the UK and internationally. The course brings delegates up to date with the current position in the UK with discussion of the likely impact of the Money Laundering Regulations 2007 and the revised JMLSG guidance notes. It looks in detail at the concept of the 'risk based approach' and provides advice on the practical application of this approach.

Prerequisites

None.

Course Outline

21st CENTURY PERSPECTIVE

• Definitions and scale
• Law and regulations
• The international dimension
• The role of organised crime
• Money laundering awareness quiz

THE LAUNDERERS' METHODS

• Placement and smurfing
• Layering
• Integration
• High risk businesses

TAKING A 'RISK BASED APPROACH' AND WHAT THIS MEANS IN PRACTICE

• The 21st century regulatory regime
• JMLSG guidance notes, third EU Directive and the risk based approach
• What does a 'risk-based approach' mean?
• Threat matrix and the '4 components of risk' - customer, product, delivery channels, geography
• Practical issue

ESSENTIAL CONTROLS

• The importance of customer due diligence procedures and 'KYC in action'
• Recognition and reporting of suspicious transactions
• Training and creating a controls culture
• 'Red flags' - some practical tips
• Exercise - delegate work in groups to create a money laundering risk profile based around key factors of transactions, locations and individuals

Anti-Money Laundering and Counter Terrorist Financing - Awareness of the Risks to Business and individuals in the 21st Century / CM030589