Anti-Money Laundering Regulatory Compliance

This course covers the highly regulated area of anti-money laundering. Since 30 June 2013, reporting entities must comply with risk based principles to identify suspicious transactions. Failure to maintain effective AML/CFT systems could result in substantial monetary penalties and reputational damage.

Do you know what your obligations are and how best to meet them on an ongoing basis? 
Ensure that you have the right processes in place to meet your due diligence, risk management, compliance and reporting obligations.

Key Learning Outcomes:

• Determine your organisation’s AM/CFT obligations
• Identify, manage and mitigate AML/CFT exposures in line with risk based principles
• Understand how money launderers and the financiers of terrorism could be exploiting vulnerabilities in your organisation

Outline:

• AML and CFT trends in New Zealand and the Asia Pacific
• Importance: why are we doing this?
• Emerging trends and examples
• How you can help protect yourself and your customers
• Overview of the legal framework
• Coverage and scope - to whom the law applies
• The AML/CFT Act and outline of compliance requirements 
• Institutional framework - Supervisors, FIU, others
• Enforcement - investigations, offences, penalties
• Outputs - STRs and Asset seizure - how the new framework will help detect and deter money laundering
• Reporting entities’ main obligations under the Act 
• Written Risk Assessment
• Appointment of a compliance officer
• Mandatory elements of an AML CFT programme
• Feedback from AML/CFT Act supervisors
• Issues with AML/CFT risk assessments
• Issues with AML/CFT programmes
• Mandatory requirements of your AML/CFT risk assessment
• The rationale and method/s used to determine the level of risk of money laundering/terrorist financing associated with each of the mandatory requirements.
• Whether the level of risk has been correctly assessed.
• Whether it will help you determine the risks of your business facing money laundering or terrorist financing in the course of its normal operation.
• Whether your risk assessment has set out how you will ensure it remains current.
• Preparing an AML/CFT programme.
• Mandatory requirements
• Policies, Procedures and Controls
• Vetting of staff involved in AML/CFT duties (compliance officer senior managers etc.)
• Staff training on AML/CFT and your polices processes for it
• Customer due diligence – including
• The use of supervisors’ ID verification code of practice
• When enhanced and simplified CDD could be conducted
• Beneficial ownership checks
• Politically exposed person checks
• Source of wealth checks
• Establishing the nature and purpose of the relationship the customer wishes to engage in.
• Account monitoring to ensure transactions align with known client financial health
• STR reporting/recording/storage
• Keeping written findings when dealing with customers from high risk countries
• Preventing money laundering and terrorist financing through use of new technology e.g. some non-face to face trading across borders.
• Using agents to conduct CDD on your behalf
• Record keeping and if records are not kept in English, how they can be readily converted into English.
• Monitoring and managing compliance with, and the internal communication of and training in your AML/CFT programme.
• Audit requirements
• Biennial Independent Audit obligations
• Choosing an Auditor
• Level of Audit
• Reporting requirements
• Annual reporting requirements
• AML and CFT trends in New Zealand and the Asia Pacific
• Importance: why are we doing this?
• Emerging trends? and examples
• Introductory concepts and definitions
• FATF, APG and the international context
• How you can help protect yourself and your customers
• Overview of the new legal framework
• The AML/CFT Act and outline of compliance requirements 
• Coverage and scope - to whom the law applies
• Detailed aspects of Regulations, code of practice and guidelines
• Institutional framework - Supervisors, FIU, others
• Enforcement - investigations, offences, penalties
• Outputs - STRs and Asset seizure - how the new framework will help detect and deter money laundering
• Reporting entities’ main obligations under the Act
• Key elements of an AML CFT programme
• Written Risk Assessment
• Procedures to detect, deter, manage and mitigate AML
• Appointment of a compliance officer
• Administering and maintaining your AML/CFT programme
• Customer due diligence processes
• Reporting and auditing of suspicious transactions
• Ongoing review and obligations
• Importance of the Written Risk Assessment
• How to identify and measure risks in business nature, products & services, channels, countries, and customers
• Policies, procedures, systems and controls you need in place
• Internal and external sources of information
• Written Risk Assessment - Policies, procedures, systems and controls you need in place
• Monitoring a risk-based compliance programme
• Ongoing Risk Analysis
• Identifying deficiencies in your systems, recording steps taken
• Trusts and beneficial ownership
• Altering and updating risk assessments for new products or expanded services, branches, changes in your sector
• Looking ahead: anticipated changes in the law and the regime
• Customer due diligence
• What are the requirements?
• What you need to know about your customers – collecting customer data
• Customer identification and verification
• Dealing with higher risk customers
• Source of Funds and Source of Wealth
• Account monitoring
• Thresholds on transactions and services
• Procedures for customer due diligence discrepancies?
   
• Senior management responsibilities
• Practical solutions to the challenges of ensuring AML/CFT compliance
• Compliance structure and governance
• Training programmes
• Employee due diligence and broader corporate intelligence capabilities
• Audit requirements
• Biennial Independent Audit obligations
• Choosing an Auditor
• Level of Audit
• Reporting requirements
• Annual reporting requirements
• Suspicious Transaction Reports (STRs)
• Obligations of the Compliance Officer