Implementing and Managing Total KYC

Course Overview International standard setters and regional anti-money laundering (AML) bodies have highlighted the vulnerabilities in the sector to help banks and financiers reduce and contain their exposure to money laundering and financing of terrorism. All banks, investment banks, Islamic banks, financial institutions and many other reporting institutions are required to comply with internationally established "Know Your Customer" policy. To prevent contraventions and sanctions for non-compliance, all players in the financial services industry need to adhere to the KYC policy and to implement and manage total KYC. Thus, all employees, especially front-line employees, and client-facing institutions which handle money, precious metals, securities, credit and domestic and international fund transfers are required to comply with internationally established "Know Your Customer" guidelines. Course Objective This course will provide participants with an insight into the implementation and management of KYC and what is required under current regulatory and good business practice requirements. The purpose of the course is to ensure that participants have a full understanding of KYC, its importance, its implementation and its management. Summary of course content Anti-money laundering Counter financing of terrorism Total KYC framework KYC regulatory requirements KYC management pitfalls Global compliance issues Customer due diligence Enhanced due diligence Customer identification practices Full KYC vs. Risk-based KYC Methodology As with all Euromoney Training courses, this programme makes use of case studies and exercises to ensure that you leave the course, ready to apply your new knowledge. Who should attend this training course? Money Laundering Reporting Officers (MLRO) Central Bank and Regulators' Management Front-line Managers Internal Auditors Compliance Specialists Risk Managers Financial Crime Managers In-house Legal Counsels Legal Practitioners
Day 1 Anti money laundering and counter financing of terrorism Origin Definition Risks and impact on banks and the financial services industry Placement, layering and integration techniques Global compliance issues The FATF and its regional groups The "40 + 9" Recommendations The new revised FATF Recommendations 2012 Globalisation and the need for international regulation and cooperation Definition and objectives of KYC The history of the KYC requirement Definition of a customer/client Developing the customer’s transaction profile Importance and rationale of KYC Workshop A Case studies on current trends and methods of money laundering and financing of terrorism. Workshop B Devising ways to detect and prevent one's institution from being used to facilitate money laundering and financing of terrorism. Day 2 KYC standards and regulatory requirements The legal and regulatory framework Compliance programme Customer acceptance policy Customer identification and verification General identification requirements The role of: Supervisors and managers Auditors Senior management and directors Application of KYC The AML policy, guidelines and manual Guidelines for opening accounts and establishing relationships Conducting Customer Due Diligence (CDD) Conducting Enhanced Due Diligence (EDD) Procedure for customer identification Identification procedure at different stages Establishing banking relationship When carrying out a financial transaction Customer research and verification When bank doubts authenticity or veracity or the adequacy of previously obtained customer identification data Proof of identity - Establishing identity and establishing present residential address Developing the customer's profile KYC for existing account-holders Confidentiality of information collected under KYC Specific identification issues Minor accounts Trust, nominee and fiduciary accounts Joint accounts Corporate vehicles such as Special Purpose Vehicles (SPVs) Introduced business Client accounts opened by professional intermediaries Politically exposed persons (PEPs) Non face-to-face customers (example, through internet and electronic banking) Adopting a risk based approach Requirements under the legal framework Impact of the new 2012 FATF Recommendations Assessing vulnerabilities and risk Full KYC vs. Risk-based KYC Why and when to conduct CDD and EDD When to implement reduced KYC requirements Reliance on KYC done by third parties, agents or intermediaries Workshop A How to conduct customer due diligence for individual customers and small businesses and how to develop these customers' profiles. Workshop B How to conduct customer due diligence for corporate customers and trusts/nominees accounts and how to develop these customers' profiles. Day 3 Constructing the AML and KYC framework Group policies Risk assessments Roles and responsibilities The MLRO Requirement of integrity of all employees Training and awareness Monitoring and record keeping Reporting requirements - Threshold reporting and Suspicious Transaction Reporting (STR) Dealing with the authorities and enforcement agencies Audit Role of HR, training, risk, IT and other critical departments Management Information (MI) and oversight Implementing and managing the total KYC Evaluation of employees in ensuring integrity Due diligence Record keeping On-going training Monitoring Reporting Real life case-studies of KYC management KYC failures and success Ways to prevent such failures Tips of successful implementation Meeting expectations Workshop A How to implement and manage total KYC within one's institution and yet remain profitable. Workshop B Discussion on implementing and managing total KYC in view of the newly revised 2012 FATF Recommendations - in particular, dealing with domestic PEPs.