Money Laundering in Banking Sector Training Ppt

Slide 3

This slide discusses how the banking sector is vulnerable to money laundering. To legitimize the illegally obtained money, it is frequently moved through financial services organizations, including banks, insurance companies, real estate agencies, and investment brokers.

Slide 4

This slide gives us he definition of anti-money laundering. Anti-Money Laundering (AML) is a system of rules, laws, and protocols that identify and prevent criminals from disguising illegal funds as legitimate income. AML guidelines help banks and other financial organizations prevent financial crimes. 

Slide 5

This slide discusses the importance AML Regulation in the banking sector. Banks are considered one of the largest institutions in the field of finance. As they daily mediate millions of transactions globally, these institutions are at a higher risk of being used for financial crimes. 

Instructor’s Notes: Additionally, the advent of online payments and the technological transformation of the financial sector have amplified the need for more stringent customer identity protection.

Slide 6

This slide discusses regulatory, reputational, and legal risks & damages caused to organizations due to money laundering. These risks and damages make implementing AML regulation in an organization essential.

Instructor’s Notes: 

• Regulatory: Regulatory rules evolve fast, and people have higher expectations of an acceptable risk-based AML program. Enforcing the rule of law has become a high priority for regulators worldwide. As per an analysis conducted by the Encompass Corporation, US regulators imposed 25 AML-related penalties in 2019, adding up to 2.3 billion USD
• Reputational: Senior executives understand the value of their organizations' reputations. Strongly reputable companies attract better clients. Their customers are loyal and purchase a wider variety of goods and services. An inquiry into money laundering that involves clients, transactions, or business operations can have a negative impact on the reputation
• Legal: Legal liability concerns are the third factor influencing the high priority that institutions accord to AML. This includes civil & criminal liabilities. With more civil class action lawsuits being filed regularly, the likelihood of suffering legal damages is high

Slide 7

This slide highlights multiple factors that make the banking sector vulnerable to the risk of money laundering and terrorist financing. These are product or service risk, channel risk, business risk, customer risk, country risk, and environmental risk.

Slide 8

This slide discusses the risk posed by a product or service of it to be used for money laundering and financing of terrorism. These risk factors increase the likelihood of laundering money. These are user anonymity, international availability, use or access by third parties, ability to use or gain access to cash

Slide 9

This slide talks about the channel risk that may lead to money laundering or the financing of terrorism. Money Laundering and Terrorist Financing risks are significantly influenced by the nature and attributes of the channels used to deliver or distribute goods and services to customers.

Slide 10

This slide discusses the business risk that may aid money laundering and the financing of terrorism. Business risk is substantially influenced by where the business operations are located, the use of third parties, and the ML/TF risks that employees pose.

Slide 11

This slide talks about the customer risk that facilitates money laundering and the financing of terrorism. The vulnerability that clients may be involved in money laundering or terrorist financing operations is taken into account while calculating ML/TF customer risk

Slide 12

This slide discusses the country risk that may encourage money laundering and terrorist financing. Country risk can be defined as the assessment of a country's or jurisdiction's susceptibility to money laundering, terrorist financing, and targeted financial sanctions.

Slide 13

This slide talks about the environmental risk that may facilitate money laundering and/or the financing of terrorism. Environmental risk considers the internal and external environment in which an organization operates.

Slide 32 to 47

These slides contain energizer activities that a trainer can employ to make the training session interactive and engage the audience.

Slide 48 to 75

These slides contain a training proposal covering what the company providing corporate training can accomplish for prospective clients.

Slide 76 to 78

These slides include a training evaluation form for the instructor, content, and course assessment to assess the effectiveness of the coaching program.