Importance of AML Training
Illegally obtained money when transferred to the legal system is known as money laundering. It involves processing criminal proceeds and hiding the illegal origin by disguising it with investments in foreign banks or legitimate businesses. Often the money is used to fund criminal and terrorist activities. It is important to note that authorities face a huge challenge while detecting money laundering; as per recent UN statistics, the government cannot detect 90% of the laundered money. The statistics reveal the magnitude of the government’s problem and the challenges it has to face while preventing financial manipulation, which is further used for serious crimes like financial terrorism. It has been estimated that the approximate amount of money laundered ranges between $800 and $2 trillion! That’s an incredibly huge amount.
Every country has its own AML/ CFT rules, which businesses must diligently follow. These rules are amended regularly to keep businesses ahead of the criminals who are always looking for new ways to launder money.
Businesses can take several steps to prevent money laundering. One crucial step towards it is to create massive awareness about the anti-money laundering laws and provide proper training. AML training is vital to understand to detect financial frauds and nab criminals. The Financial Action Task Force- FATF, established in 1989, has provided 40 guidelines to prevent money laundering. The 15th recommendation of FATF40 includes creating internal policies, procedures, and measures that involve regular AML training of the employees.
Noteworthy Points To Consider Before Training
• The messages to be conveyed with the training.
• The industry to which the company belongs.
• The challenges the company is facing with AML compliance
• The information that needs to be dispensed to the employees.
• High-risk areas that the business should target with AML training.
• Identify the proper balance between classroom training and new technologies training.
• Onsite training requirement.
• Duration of training sets for AML Training.
Importance of AML Training
Conclusion
AML training has become an absolute necessity to keep employees updated about the latest AML laws and regulations. AML UAE provides AML training services at competitive prices. The company is a forerunner in offering AML compliance training services and customised training sessions that align with a particular type of business with a risk-based approach. With in-house compliance training for your employees, you can keep your employees updated about the AML / CFT rules and regulations and contribute towards preventing money laundering at all levels. We have an expert team of regulators, AML experts, and compliance professionals. For more information on our company, feel free to visit AML UAE.
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Training of employees is important in AML because it helps employees and management better understand the rules and regulations in the country. They know how to assess customer risks, detect suspicious transactions, and implement relevant policies to save transactions from money laundering.
About the Author
Pathik Shah
FCA, CAMS, CISA, CS, DISA (ICAI), FAFP (ICAI)
Pathik is a Chartered Accountant with more than 25 years of experience in compliance management, Anti-Money Laundering, tax consultancy, risk management, accounting, system audits, IT consultancy, and digital marketing.
He has extensive knowledge of local and international Anti-Money Laundering rules and regulations. He helps companies with end-to-end AML compliance services, from understanding the AML business-specific risk to implementing the robust AML Compliance framework.