This course aims to describe and explain the Risk-Based Approach (RBA) procedures so that the firms focus their efforts on those areas where the risk of ML and TF appears to be higher. Resources should be efficiently invested and applied where they are most required.
The risk-based approach (RBA) is central to the effective implementation of the FATF Recommendations. It means that supervisors, financial institutions, and intermediaries identify, assess, and understand the money laundering and terrorist financing (ML/TF) risks to which they are exposed, and implement the most appropriate mitigation measures.
This course includes a general presentation of the RBA and provides specific guidance using risk criteria such as country or geographic risk, customer risk, product or service risk. In addition, examples of risk factors under these risk categories are provided.
The course is split into the following units:
1. Unit 1 – Risk Assessment for Money Laundering
This unit describes the need for combating AML risks and other financial crimes. Financial institutions must be able to respond to threats on a contextual basis to balance efficiency and cost needs with compliance obligations.
2. Unit 2 – Risk-Based Approach (RBA)
This unit describes the RBA methodology when assessing risk according to the Financial Action Task Force (FATF) recommendation: taking into account risks relating to types of customers, countries or geographic areas, and particular products, services, transactions or delivery channels.
3. Unit 3 – Assessing and Managing the ML/TF risk
A risk assessment enables the Financial Institutions to focus on its AML/CFT efforts and to adopt appropriate measures to optimally allocate the necessary resources. On the Basis of the assessments conducted, the Financial Institutions should have controls, policies and procedures that enable them to manage and mitigate the identified risks effectively.
4. Unit 4 – Simplified and Enhanced Due Diligence measures
According to FATF Recommendation 1, where higher risks are identified financial institutions and Designated Non-Financial Business and Professions (DNFBPs) should be required to take enhanced measures to manage and mitigate the risks.
5. Unit 5 – AML Case Studies
This final unit will offer a practical perspective by reviewing recent cases where financial institutions failed to adopt efficient risk-based AML mechanisms.
This course may take up to 5 hours to complete. However, actual study time differs as each learner uses their own training pace.
This module is addressed to all individuals who practice Anti-Money Laundering such as Compliance/AML Managers in Banks, Investment Firms, Investment Funds, ASPs, Trust Service Corporate Providers and Lawyers.
The course is offered fully online using a self-paced approach. The learning units consist of reading material. Learners may start, stop and resume their training at any time.
At the end of each session, participants take a Quiz to complete their learning unit and earn a Certificate of Completion once all quizzes have been passed successfully.
Accreditation and CPD Recognition
This programme has been developed by the European Institute of Management and Finance (EIMF), an EU recognised training institution.
The syllabus is verified by external subject matter experts and may be accredited by financial regulators, and general financial training accreditation bodies, such as CISI and ACAMS, for 5 CPD Units.
Eligibility criteria and CPD Units are verified directly by your association or other bodies in which you hold membership.
Registration and Access
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Access to the course is valid for 90 days.
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