Certification in Risk Based Approach to KYC and AML is a program designed for the senior management level employees of the financial institutions. The concept of risk-based Anti Money Laundering (RBML) was first implemented in 2007 by the Financial Action Task Force and further codified in its 2012 update. The International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation is also known as the ‘FATF Recommendations’. RBML, is shifting the focus of AML management from judgmental post-analysis to proactive management. Risk Management is the concept which is central to the effective AML control.
Risk Based Money Laundering
The FATF Recommendations require the risk-based approach to be applied on several levels. Firstly, countries should develop a national risk assessment structure to combat money laundering and terrorist financing risks in the jurisdiction. Secondly at the financial institution level. Previously, financial institutions were not serious about collecting information about their customers. They collected information about customers such as credit rating, business operations and money management etc. but these customers only accounted for a small fraction of their clients.
In-spite of this, Supervisory authorities imposed heavy penalties on financial institutions for the failure to deal with the identified risk. This vulnerability to deal with money laundering, however lead to identification of level of risk for all the customers. Banks started identifying the high risk customers. Hence, this course emphasize more on the high risk customers.
Syllabus for the Certification in Risk Based Approach to KYC and AML is designed carefully to address the needs of the compliance professionals working in the KYC domain. Effective implementation of the the guidelines issued by the FATF requires the banks to assess and understand the risk associated with the customers. Customer Due Diligence also known as CDD is the Basis of AML Management.
The curriculum of Certification in KYC and RBML is divided into various sessions listed below
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