Money Laundering and Anti-Money Laundering (AML) Compliance
January 23, 2012
Registration Fee: US$995.00 Register Location Instructor
Many classes sell out; we suggest registering at least one week in advance to ensure your seat.
Basic Level, 7 CPE Credits
Instructor: L. Burke Files
Hours: 9:00 am - 4:30 pm; Registration/Breakfast begins at 8:30 am
Location: New York City, Bayard's, One Hanover Square
This course is an overview of the basics couched in the economics that drive the incentive to both steal and launder funds. The focus is on what a broker, trader, firm or regulator may see and is directed away from banking and street level smurfs. There will also be concrete example of how fraudsters, criminals and terrorists function to manage their ill-gotten gains. Several examples of how to use the exchange industry to launder funds will be given and the day will finish up with some simple case studies to get to the participants to grapple with the most important part of AML - learning to ask the right questions and backing the questions with action. The group will also look at initiatives that are projected that will radically alter what we, as professionals need to know, and new industries that AML policies and laws will affect.
Course Objectives:
By the end of the course, participants will be able to:
- Define money laundering and explain how it works
- Recognize and discuss flagged transactions
- Identify the “Who, What and How” in money laundering transactions
- Discuss emerging technologies and the future of regulation (time permitting)
Session One: Understanding Money Laundering
By the end of the session, participants will be able to:
- Define “Money Laundering” and discuss three stages of Placement, Layering and Integration
- Discuss the Bank Secrecy Act and USA PATRIOT Act
- FATF Overview
- Discuss the roles and responsibilities of government, regulatory, and law enforcement authorities in preventing money laundering
- Recognize the conditions required for money laundering to occur and discuss how to combat it
- Describe trends in criminal and regulatory enforcement actions
Session Two: Flagged Transactions
By the end of the session, participants will be able to:
- Discuss customer due diligence requirements
o Beneficial ownership
o Politically Exposed Persons (PEPs) – foreign and domestic
o Non-resident aliens
o Non-government organizations (NGOs) - Recognize industry and client risk factors
- Monitor high-risk clients and transactions
- Analyze an effective AML compliance program
- Identify ways to use the public and private markets to launder money
Session Three: Who What and How
By the end of the session, participants will be able to:
- Identify the core requirements to implement a solid AML Compliance program
o Firm Policy
o AML Compliance Officer – Central
o Suspicious activity – monitoring and reporting
o Customer Identification Program (CIP)
o Independent testing
o Employee training - Discuss charitable organizations and terrorist financing
o Identify risks and implications of banking charitable organizations
o How do terror organizations finance their operations and how to spot suspicious transactions
o Recent cases and hands-on examples - Identify other laundering mechanisms
o Trade
o Insurance
o Different structures
o Offshore financial centers
o Tangibles and intangibles
o Micro transactions
o Virtual worlds
Session Four: Case Studies
By the end of the session, participants will be able to:
- Work on some short cases and present their approaches to the class
Session Five: Emerging Technologies and the Future of Regulation
- Examine the risks posed by peer-to-peer lending, mobile banking, virtual worlds, stored value cards and m-payments
- Learn best practices to protect your organization from emerging technologies
- Laws and requirements that are in the works