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Guide

The document outlines the FATF Recommendations on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT), emphasizing key areas such as Customer Due Diligence, beneficial ownership, and reporting obligations. It discusses international standards, the risk-based approach to identifying and managing risks, and essential components of an AML/CFT program, including compliance and suspicious activity reporting. Additionally, it highlights emerging risks and the role of technology in enhancing AML efforts.

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5 views3 pages

Guide

The document outlines the FATF Recommendations on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT), emphasizing key areas such as Customer Due Diligence, beneficial ownership, and reporting obligations. It discusses international standards, the risk-based approach to identifying and managing risks, and essential components of an AML/CFT program, including compliance and suspicious activity reporting. Additionally, it highlights emerging risks and the role of technology in enhancing AML efforts.

Uploaded by

tamimraufi7
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1.

FATF Recommendations

 Understand the 40 FATF Recommendations on AML/CFT.

 Key areas:

o Customer Due Diligence (CDD) / Know Your Customer (KYC)

o Beneficial ownership identification

o Record-keeping requirements

o Reporting suspicious transactions

o Politically Exposed Persons (PEPs)

o Cross-border wire transfers

o Reporting obligations to Financial Intelligence Units (FIUs)

 Practical application: How institutions implement FATF guidance in


policies, risk assessments, and transaction monitoring.

2. AML/CFT International Standards

 Basel Committee guidelines

o Bank supervision and risk-based approach

o Internal controls and independent audits

 UN Conventions

o Vienna Convention (1988) – Narcotics trafficking

o Palermo Convention (2000) – Transnational Organized Crime

o Terrorist Financing Conventions

 ISO 37001 & ISO 31000 (for risk management and anti-bribery,
optional but useful context)

 EU Directives (for European context, optional for global


understanding)

3. Risk-Based Approach (RBA)

 Understand how to:


o Identify customer and product risk

o Apply enhanced due diligence (EDD) for high-risk customers

o Monitor transactions proportionate to risk

 How to incorporate risk-based controls in policies and monitoring


systems

4. AML/CFT Program Components

 Compliance Program Elements

o Internal policies, procedures, and controls

o Appointment of compliance officer

o Independent testing/audit of program

o Training and awareness for staff

 Customer Risk Profiling and Ongoing Monitoring

o Red flags and suspicious transaction identification

o SAR/STR filing process

5. Sanctions and Politically Exposed Persons (PEPs)

 Global sanctions lists (UN, OFAC, EU)

 Screening and monitoring techniques

 Risk mitigation for high-risk jurisdictions

6. Suspicious Activity Reporting (SAR/STR)

 Reporting obligations and thresholds

 Internal escalation procedures

 Maintaining confidentiality and legal protections

7. Practical Application & Case Studies


 Recognize AML red flags in:

o Deposits, withdrawals, wire transfers

o Structuring or smurfing

o Unusual patterns or inconsistent customer behavior

 How to document and escalate findings

8. Other Relevant Topics

 Emerging risks:

o Cryptocurrencies and virtual assets

o Money laundering through fintech, EMIs, and MSPs

 AML technology:

o Transaction monitoring systems

o KYC/CDD automation

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