COURSE DESCRIPTION:
A key concern and significant risk for financial institutions is the possibility of unknowingly becoming complicit in money laundering, whereby illegitimate money is moved into legitimate institutions. To mitigate such risk, financial institutions have strengthened their internal control systems by increasingly making use of Know Your Customer (KYC) and Customer Due Diligence (CDD) requirements as part of their anti-money laundering (AML) strategies.
KYC/CDD is a critical element for effectively managing the risks posed by potential clients, thus protecting the organization against criminals, terrorists, and Politically Exposed Persons (PEPs) who might present a higher risk, and possible dubious actions by existing customers that need to be regularly reassessed.
This course provides essential knowledge for KYC and CDD procedures, both key tools in assessing customer risk and a legal requirement to comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) laws. Effective KYC/CDD involves knowing a customer’s identity and their financial activities, ongoing monitoring of business activities, and identifying and mitigating the AML/CFT risk a business relationship may pose on a regulated entity.
LEARNING OUTCOMES:
Upon completion of the course learners will be able to:
- Articulate the key concerns and risks associated with financial institutions unknowingly becoming complicit in money laundering.
- Identify the importance of Know Your Customer (KYC) and Customer Due Diligence (CDD) as integral components of anti-money laundering (AML) strategies.
- Differentiate between risks associated with potential clients, including criminals, terrorists, and Politically Exposed Persons (PEPs).
- Assess the higher risks posed by specific customer profiles and comprehend the need for continuous reassessment.
- Demonstrate an understanding of the legal requirements associated with KYC and CDD procedures.
- Recognize the legal obligations financial institutions have to comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) laws.
- Apply best practices in identifying a customer’s identity and understanding their financial activities.
- Implement ongoing monitoring processes for business activities to ensure compliance with AML/CFT laws.
- Assess and identify Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) risks associated with business relationships.
- Propose strategies to mitigate AML/CFT risks and protect the regulated entity.
- Explore the regulatory landscape governing KYC and CDD procedures in the financial industry.
- Analyze how compliance with regulatory requirements contributes to effective risk management in financial institutions.
- Apply acquired knowledge to enhance organizational practices related to KYC and CDD.
- Develop strategies to align internal control systems with industry best practices for AML and risk management.
PARTICIPANT PROFILE:
This course is addressed to all individuals who practice AML such as compliance and/or AML managers in banks, investment firms, investment funds, ASPs, trust service corporate providers, and lawyers. It will also be useful to front-line employees who deal with customer onboarding and account management.
