Anti-Money Laundering

A Practical Guide to Reducing Organizational Risk

Rose Chapman

• Publisher: Kogan Page
• Year: 2018
• Print ISBN: 9780749481896
• eBook ISBN: 9780749481902
• Edition: 1
• Topic: Business
• Subtopic: Business Ethics
• Index: Business

It is estimated that between 2 and 5 per cent of global GDP (over $3 trillion) is laundered by criminals around the world every year. Once thought to be a problem which only affected banks and the financial services sector, high profile cases, such as the recent leak of the Panama Papers in 2016, have thrust the issue into the public arena, and governments around the world are being forced to put robust systems and controls in place. Anti-Money Laundering offers a cost-effective self-development tool for the busy compliance professional eager to progress their career and in need of an accessible, practical and jargon-free introduction to anti-money laundering (AML). Anti-Money Laundering offers a practical guide to navigate the maze of requirements needed to counter money laundering in an organization. This book separates the different elements of AML practice, featuring a range of case studies and scenarios highlighting issues and best practices around the world. The text demonstrates that it is by foresight and methodology that AML can be mitigated, and provides clarity on complex points to better enable readers to gain the expertise they need to achieve success in practice.

INDEX

Note: key takeaways, references and further reading and ‘stop and think’ are indexed as such; page numbers in italics indicate figures or tables.

4MLD 84–85 (and) see also European Union (EU) Directives

40 Recommendations of 7–8, 108

definition of senior management 95

General Data Privacy Regulation (GDPR) 105

high-risk factors in 89

customer risk 89

geography 89

product, service and delivery channel risk 89

higher- and lower-risk PEPs 95

PEPs (individuals entrusted with prominent public functions) 28, 92–93

requirements of 29–30

4MLD: summary of notable changes in 97–105

01. beneficial ownership: companies and trusts 97–98

02. scope increase 98

03. clarification of business deemed to be doing business in the UK 98

04. AML/CTF policies and procedures for all obliged entities 98

05. local law being contrary to 4MLD 98

06. risk-based approach 99

07. policies 99

08. internal controls 99

09. training 99–100

10. CDD for financial services organizations 100

11. CDD identification and verification of customer 100–101

12. CDD and relevance of risk assessment 101

13. timing of CDD 101

14. Enhanced Due Diligence (EDD) 101–02

15. Enhanced Due Diligence – high-risk factors 102

16. Enhanced Due Diligence – correspondent relationships 102–03

17. Enhanced Due Diligence – politically exposed persons (PEPs) 103–04

18. Simplified Due Diligence 104

19. reliance on third parties for CDD 104

20. record keeping and data protection...

Table of contents

• Cover
• Title Page
• Copyright
• Contents
• About the author
• Disclaimer
• Acknowledgements and dedication
• List of abbreviations
• A note before you begin
• Introduction
• 01    Reaction: The rise of anti-money laundering and counter-terrorist financing activity
• 02    Implementing an anti-money laundering risk control framework
• 03    Using the anti-money laundering strategy wheel
• 04    Applying the brakes at key moments
• 05    Country and people risk
• 06    Product and delivery channel risk
• 07    Regulators: External reporting and Financial Intelligence Unit activity
• 08    Navigating cultural change
• Conclusion
• Index
• Backcover