Anti-Money Laundering (AML) Regulation and Updates

The 4th EU AML Directive was enacted on the 25th of June 2015 and had to be fully transposed by member states by the 26th of June 2017. It repealed the 3rd EU AML Directive introducing stricter rules and shifting the focus to a more risk-based approach.

By making significant changes to the existing regulatory framework, EU member states aimed in becoming more reactive to the constantly evolving threat of Money Laundering and Terrorist Financing and in better shielding the integrity of financial markets.

To face this ever-growing threat and before even member states fully implemented the 4th AML Directive, the Commission started discussing and finally proposed a 5th AML Directive, which in April 2018 the EU Parliament decided to adopt and will go live in January 2020.

Furthermore, AML 6th Directive is already under preparation.

Training Objectives

By the end of this programme, participants will attain an understanding of:

• The basic principles of Anti- Money Laundering and the Laws, Regulations and Guidelines put in place to respond to these.
• The measures and procedures that should be applied to mitigate the risk of Money Laundering and the relevant Authorities approach.
• A critical analysis of how the 4th EU AML Directive affected the existing rules and principles as well as what changes with the 5th Directive and why.

Training Outline

• AML Laws & Regulations: Historical Development, Scope & Application
• What is Money Laundering: Definition & the Stages of Money Laundering
• The ‘Risk- Based’ approach
• Common Steps to Ensuring Compliance, the Time & Recourses needed, the drafting and implementation of Internal AML Manuals, Policies & Procedures, the implementation of an internal Reporting System to the AMLCO & the BOD and externally to CYSEC & MOCAS, drafting of systems for Ongoing Compliance Monitoring, Record Keeping and other
• Customer Due Diligence & KYC: Description of the Simplified / Enhanced Due Diligence, the Documentation Requirements, Verification of client information and the Certification of Documents
• How to Build the Economic Profile of the client, source of wealth, source of funds, internal assessment of information, supporting documents, transactions monitoring
• How Authorities Approach AML: Fines, Penalties, Reputational damage, the ‘name and shame’ process
• The Compliance Function: Duties and Responsibilities of the AMLCO and the Board of Directors
• The 4th AML shift of focus. Critical Analysis of significant changes brought by the 4th AML
• Risk Based shift in focus against the ‘tick a box’ approach
• PEPs definition and status
• Cash Payment Thresholds
• The Ultimate Beneficial Owner definition under the 4th AML
• National Central Register
• Tax Crime and Tax Criminal Activity
• Sanction and Penalties
• Third Country Equivalence
• Group- Wide Compliance
• The 5th AML Directive: the core goals and what to expect
• First thoughts of the 6^th Directive

Training Style

The training style will include the presentation of all the material using slides and handouts.  The trainer will use practical examples to elaborate various concepts as well as show various videos that highlight particular course concepts and encourage class discussion.

Participants will be engaged in exchange of ideas and sharing of knowledge on the subject matter.  Participants will also be able to ask questions and obtain clarifications from the trainer on the material covered.

Who Should Attend

• AML Professionals and Compliance Officers employed in Financial and Credit Institutions
• Employees working in Investment Firms
• Fund Managers and Fund Administrators
• Internal and External Lawyers
• Internal Auditors
• Internal and External Accountants
• Corporate Service Providers
• Other Professionals who need to update or refresh their knowledge on AML