Anti Money Laundering Training (AML CFT Training) for UK

AML training courses are used by insurance and financial professionals to educate themselves with the practice of money laundering — the criminal business of concealing the real origin and ownership of unlawful currency — as well as the laws that make it unlawful. Making sure your workers are properly taught in anti-money laundering (AML) is an important part of reducing your financial crime risk. Not only is it critical to safeguard your company, but it is frequently required by law.

Around the world, there has been an increase in corrupt influences on young people and it’s already being misused by criminals through emerging technology. Money laundering is the process of converting illegally obtained monies into sums that appear legal and can thus be spent as though they came from legitimate sources. Money laundering legalizes criminal proceeds, allowing drug cartels, human traffickers, and other criminals to expand and profit from their activities. Tax evasion, theft, fraud, bribery, corruption, smuggling, modern slavery, human trafficking, drug trafficking, and illegal arms sales are all examples of money laundering offenses.

Criminal property (as defined in POCA) is a property that constitutes or represents a person's benefit from criminal activity, and the alleged offender knows or suspects that the item in question does. Money, money's worth, securities, tangible property, and intangible property are all examples of criminal property. Money laundering can be carried out in any part of the world and can range from a single act involving one person to complex setups involving various individuals. There are no materiality or de-minis exceptions about money laundering. The UK has a thriving and dynamic business climate, aided by a small number of restrictions on starting a company. Criminals frequently take advantage of the ease with which a business can be formed by forming ostensibly legitimate corporations both in the UK and abroad, but which are largely used to launder illicit funds.

Criminals often take advantage of the property market, particularly in London. Large financial centers are desirable destinations or transit points for the proceeds of crime; money laundered in this country is frequently the proceeds of crime originating in another country. Criminal and regulatory fines could be enforced by UK, EU, and US authorities due to large amounts of criminal money flowing through the UK.

As Money Laundering is on the rise, this course is will give you the basic knowledge and understanding of what Money laundering and Terrorist financing are all about and how it is carried out in the world. It is highly important to learn how these criminal offenses are carried out as there is a potential risk that someone might approach you or someone you know into this act and that could put someone’s life in danger.

As we learn in detail about how to prevent money laundering from spreading across the globe, it is essential to learn about the rules, guidelines, and legislations, on how to detect these suspicious activities. The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), the Proceeds of Crime Act 2002 (POCA) (as amended by the Serious Organized Crime and Police Act 2005 (SOCPA)), and the Terrorism Act 2000 (TA 2000) (as amended by the Anti-Terrorism, Crime and Security Act 2001 (ATCSA 2001) and the Terrorism Act 2006 (TA 2006).

The existing Money Laundering, Terrorist financing, and Transfer of Funds (Information on the Payer) Regulations 2017 are amended in a limited but significant way by these regulations (MLR 2017). These include broadening the scope of the regulated sector, changes to customer due diligence, and enhanced due diligence, including a new requirement to report discrepancies between customer due diligence information and information on the Persons with Significant Control register to Companies House.

It's worth noting that, as of June 2, 2021, Crown Prosecution Service (CPS) advice allows for prosecution under this clause regardless of whether or not a money laundering offense has been proven. As a result, Section 330 requires to notify suspicions of money laundering to authorities, regardless of whether money laundering occurs.

All individuals and legal entities who are within or undertake activities within the UK’s territory must comply with the EU and UK financial sanctions that are in force. Most financial sanctions are made through EU law which has a direct effect under UK law. It is important to understand that each financial transaction made of different clients must be tracked and regulated to assess whether the amount and flow of money are being transferred legally or not.

Customer Due Diligence and Enhanced Due Diligence are used to assess any potential risk from the customer as recommended by the Financial Action Taskforce. Banks and other financial institutions check their clients' information to make sure it's safe to do business with them and financial intermediaries have the right to seek complete information from their clients to verify their integrity. Both are essential components of AML programs, and their proper implementation necessitates appropriate employee training.

CDD is important for protecting against the misuse of financial services by any criminal and also to strengthening the Anti-Money Laundering Controls of a company, and in case there is any situation where the risk of Money laundering or Terrorist Financing is very high, then that is where EDD comes in. In terms of EDD measures, the Regulations state that if EDD is required because a transaction is complex and unusually large (etc...), the EDD measures must include, as far as reasonably possible, examining the transaction's background and purpose, as well as increasing the degree and nature of monitoring of the business relationship to determine whether the transaction or relationship appears to be suspicious.

There is also another type of diligence that will be taught in the course that will help us identify if the risk of a transaction is Low, and that is where Simplified Due Diligence (SDD) plays its part. Simplified due diligence is a term used in the 2007 Regulations that states that if a firm has reasonable reasons to believe that a client comes into one of the relevant groups, it is not required to conduct the regular customer due to diligence processes outlined in Regulation 7. Businesses who may be allowed to use the simplified due diligence exemptions but believe there is a higher risk of money laundering in a particular case should use their regular or enhanced due diligence methods.

These Risk-Based Approaches are vital in assessing the Risk Standing between the customer and transaction made and will help us to identify which process, whether CDD or EDD, is to be implemented based on the type of risk involved in this activity. In a way that is suitable to you, your compliance regime must include an evaluation and documentation of risks connected to money laundering and terrorism funding. This is in addition to the obligations for customer identification, record keeping, and reporting. A risk-based strategy is a method for identifying high-risk areas for money laundering and terrorist funding and developing mitigation methods.

As a basic baseline need, existing duties, such as customer identification, shall be maintained. When it comes to circumstances when additional due diligence is required, a risk-based approach principle is to focus your resources where they are most needed in order to manage risks within your tolerance threshold. This method enables the Senior Management to make systematic controls and implement the most useful procedures in relation to CDD, EDD as well as a monitor of the Compliance areas of these customers.

The course will also teach you about various types of risks that are included when choosing this method, whether the risk involves a customer, an agent, or a transaction of high value. You must establish what is acceptable to you, taking into account the nature of each product or service, the geographical regions in which you do business, and your client connections.

The approach to risk management and risk mitigation necessitates top management's leadership and involvement in the discovery and prevention of money laundering and terrorist financing. Senior management is ultimately accountable for making policy, procedure, and process decisions that limit and control the risks of money laundering and terrorist funding within a company.

The HMRC guidance defines a senior manager in this context as someone who has the authority to make decisions that affect the business’s exposure to money laundering and terrorist financing risk. Examples include but are not limited to directors, company secretaries, CEOs, members of a management body or someone who performs those functions. The focus on the responsibilities of senior management in the real estate sector is not restricted to the UK. The general direction of travel of regulators and legislators internationally, is to place greater responsibility and accountability burdens on the senior management of regulated firms.

Senior management should also be cognizant of their personal liability in the form of financial penalties and/or imprisonment as a deterrent to failing to fulfil those responsibilities. The senior managers of a regulated business are responsible for the oversight of meeting the Regulations and can be held personally liable if they do not take the steps necessary to protect their business from money laundering and terrorist financing.

The key for any senior manager is to at least seek to get a ground in the basics and key requirements of the relevant part of the UK regulatory system. They must Understand what AML systems and controls the firm has in place and assess whether they are working effectively, seek regular opportunities to consider and challenge: the systems and controls; the testing that is done of them; how they are communicated through the firm; the people putting them in place; and whether sufficient resource is deployed to manage AML risk. Senior managers should also Understand what AML risks the firm faces – be familiar with the firm's AML risk assessment (and even better, be involved in putting it together/revising it.

It is a duty for all employees in the financial sectors to identify Suspicious Activities such as Money Laundering and report these activities to the right authorities and regulators. For this matter, the report must be submitted to NCA (National Crime Agency) as soon as their criminal traces have been found. SARs (Suspicious Activity Reports) alert law enforcement to possible money laundering or terrorist financing incidents. Financial institutions and other professionals such as solicitors, accountants, and estate agents file SARs, which are a vital source of intelligence on a wide spectrum of criminal conduct, not an only economic crime.

They offer law enforcement with information and intelligence from the private sector that would otherwise be unavailable to them. Private persons can also file SARs if they suspect or have knowledge of money laundering or terrorism financing. SARs can aid in the detection of changes in the nature or incidence of organized crime, such as mortgage and boiler room scams. This allows for identification and prevention, as well as the sending of alerts to firms that are in danger from such conduct.

This course will also teach you criminal offenses, such as Tipping Off customers, as well as the guideline and procedure of creating these reports within the deadline. It will also help you on how to suspect all unusual transactions to see if there’s anything that is being carried out illegally. The course will also teach you the Legal Consequences that you would have to face if you don’t report in time or the correct format to the authorities which could either lead to a heavy fine or be sent for imprisonment based on these actions.