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Anti-Money Laundering - AML Training

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What Is AML?

Anti-Money Laundering (aka "AML") requirements are regulations and practices put in place to prevent the illegal generation of income through activities that disguise the true origins of the funds.

Essentially, banks are required to have processes that determine which transactions are potentially suspicious and implement a strong BSA and AML compliance program that uses comprehensive Customer Due Diligence policies, procedures, and processes for all customers, particularly those that present a higher risk for money laundering and terrorist financing.

What Are The Key AML Requirements?

An AML compliance program should ensure that an institution is able to detect suspicious activities associated with money laundering, including tax evasion, fraud, and terrorist financing, and report them to the appropriate authorities.

AML requirements generally include Customer Due Diligence, Suspicious Activity Reporting, and record keeping, and should focus not only on the effectiveness of internal systems and controls developed to detect money laundering, but on the risk posed by the activities of customers and clients with which an institution does business.

An effective BSA/AML program should include an AML Compliance Officer who: develops internal policies, procedures, and related controls; creates written policies and procedures; tests of the institution's AML program, and; trains the staff to help ensure compliance.

AML Certification And Compliance Requirements: What Is An AML Compliance Program Required To Have Or Do?

The Bank Secrecy Act requires financial institutions to develop and implement AML compliance programs. Under BSA and AML, covered financial institutions must identify at least a beneficial owner under the control criterion for each legal entity customer.

FINRA Rule 3310 sets forth minimum standards for AML compliance programs, and requires firms, at a minimum, to:
  • Establish and implement policies and procedures that can be reasonably expected to detect and cause the reporting of suspicious transactions
  • Establish and implement policies, procedures, and internal controls reasonably designed to achieve compliance with the Bank Secrecy Act and implementing regulations
  • Provide for annual independent testing for compliance to be conducted by member personnel or by a qualified outside party (or every two years if the firm does not execute transactions with customers or otherwise holds customer accounts or acts as an introducing broker with respect to customer accounts)
  • Designate and identify to FINRA (by name, title, mailing address, e-mail address, telephone number, and facsimile number) an individual or individuals responsible for implementing and monitoring the day-to-day operations and internal controls of the program. Such individual or individuals are associated persons of the firm with respect to functions undertaken on behalf of the firm. Each member must review and, if necessary, update the information regarding a change to its AML compliance person within 30 days following the change and verify such information within 17 business days after the end of each calendar year
Further, the program must be approved in writing by a member of senior management and be reasonably designed to achieve and monitor the member's ongoing compliance with the requirements of the Bank Secrecy Act and the implementing regulations promulgated thereunder.

What Are Common Errors Regarding AML Compliance?

Common errors in AML compliance can lead to regulatory sanctions, reputational damage, and legal consequences. Some of the most prevalent errors include:
  • Inadequate Customer Due Diligence:
    Failure to conduct thorough customer due diligence to understand the nature of the customer's activities, risk profile, and beneficial ownership can result in exposure to high-risk individuals or entities.
  • Insufficient Know Your Customer (KYC) Procedures:
    Failing to verify the identity of customers through appropriate KYC procedures can lead to the onboarding of illicit actors or entities involved in criminal activities.
  • Lack of Transaction Monitoring:
    Not implementing effective transaction monitoring systems to detect suspicious activities, unusual patterns, or transactions that deviate from a customer's normal behavior can result in missed opportunities to identify potential money laundering.
  • Inadequate Training and Awareness:
    Insufficient training of staff on AML policies, procedures, and regulatory requirements can lead to errors in compliance efforts and failure to recognize suspicious activities.
  • Poor Record Keeping:
    Failure to maintain accurate and up-to-date records of customer information, transactions, and due diligence efforts can hinder investigations and audits, leading to compliance breaches.
  • Failure to Report Suspicious Activity:
    Neglecting to report suspicious transactions or activities to the appropriate regulatory authorities as required by law can result in penalties and regulatory scrutiny.
  • Lack of Senior Management Oversight:
    Inadequate oversight and involvement of senior management in AML compliance efforts can lead to a lack of prioritization and commitment to compliance within the organization.
Addressing these common errors requires a comprehensive approach that includes robust policies and procedures, ongoing training and awareness programs, effective use of technology, and strong oversight from senior management to ensure adherence to AML regulations and mitigate the risk of financial crime.

What You'll Learn From Our AML Training Courses

The AML rules can be confusing, and updates occur frequently, so effective AML compliance training is essential for keeping current, staying in compliance, and avoiding fines.

Our AML training courses will help you to better understand the what's, how's, and preventitative measures for money laundering, including red flags, customer due diligence, and information-sharing policies. They may also help you meet anti-money laundering / AML certification requirements in your state.

Specifically, you will learn:
  • The various red flags of money laundering
  • The criteria that constitutes a high-risk person, product or service, and geographic location
  • Customer Due Diligence (CDD)
  • Information Sharing
  • Office of Foreign Assets Control (OFAC)
  • High Risk Persons and Entities
  • High Risk Products and Services
  • High Risk Geographic Locations
  • The role of OFAC and how an OFAC program should be implemented at the institution

Find AML Training And AML Certification Courses

To find your desired Anti-Money Laundering training courses, either select a Recommended Course from the list below, or select "Anti-Money Laundering" and your state from the "Professional Development" section of the search box at the bottom of this page.

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What Is The Anti-Money Laundering Act?

Money laundering is a process where criminals attempt to conceal illegally obtained funds by transferring into or through banks or legitimate businesses. By doing so, the criminals can then spend or use the money without raising suspicion. The three stages of money laundering consist of:
  • Placement: The movement of cash from its source via means such as currency smuggling, bank complicity or the blending of funds
  • Layering: Implementing various techniques that make it more difficult for law enforcement to follow the trail of illicit funds
  • Integration: The process of moving the laundered money into the economy and through the banking system by means such as property dealing and fraudulent loans
Congress passed the Bank Secrecy Act (BSA), often referred to as the anti-money laundering law (AML), in 1970 to enable U.S. banks to help government and law enforcement agencies detect and prevent money laundering activities. The BSA includes a series of implementing regulations known as anti-money laundering rules. FINRA Rule 3310 lists the standards that a bank must adhere to maintain compliance with the AML rules. Firms that do not comply could face significant financial, and in some cases, criminal penalties.

What Is An AML Officer?

In order to oversee internal anti money laundering policies and remain compliant with important regulations, banks, credit unions and similar financial institutions are required to appoint an Anti Money Laundering (AML) Compliance Officer.

What Does An AML Officer Do?

An AML officer is primarily responsible for overseeing the development and implementation of the company's AML compliance program and the training of the staff.

What Are An AML Officer's Duties & Responsibilities

The AML Officer should:
  • Review practices
  • Conduct investigations
  • Identify potential risks
  • Maintain regulatory knowledge
  • Review and update internal policies
  • Prepare and file required documents
  • Train staff on potential AML issues and corporate AML policies
Other roles of an AML Officer include coordinating internal audits and making compliance recommendations based on their findings.

Experience The Bank Training Center Difference is one of the verticals that comprise TrainingCenter, a leading provider of training services for industries such as banking, insurance and finance since 1994. As a banking professional, you'll have access to a series of programs that provide essential information regarding the latest, most relevant topics impacting the industry. In addition to our AML training offerings, you can also choose courses covering cyber security, call reports, fraud, deposit compliance and much more.

As a Bank Training Center student, you'll have the opportunity to choose from multiple program formats, including online webinars, in-person seminars, online courses, offline materials and audio conferences. All courses are informative and easy to follow, enabling you to maximize your learning experience. Whether you're looking to boost your industry knowledge or meet your compliance requirements, you'll find the courses that will fit your educational needs and also suit your learning style.

Order Your AML Compliance Training Course Today!

Take a closer look at our entire catalog of anti-money laundering training programs and place your order today. Feel free to contact us online if you have questions or concerns about any of our courses.
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