www.financialcrimesconsulting.com +61 (02) 8001 6433

Anti-Money Laundering and Countering the Financing of Terrorism in New Zealand – All Staff Course

Background

Anti-Money Laundering (AML) legislation has been around for a number of years. AML legislation was expanded to include Counter-Terrorism Financing with the introduction of the US Patriot Act in 2001, as a response to the September 11 terrorist attacks. Since then, Governments around the world have been introducing new laws focused on detecting and reducing money laundering and terrorism financing. Among other compliance requirements, these institutions must develop and implement AML training. E-learning is the methodology of choice for such training. Not only is e-learning cost-effective and rapidly scalable, it provides an audit trail of an institution’s compliance with the training requirements of the applicable AML regulations.

Purpose

The purpose of this course is to provide individuals with an overview of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT Act 2009). The content of this course covers the mandatory requirements for staff awareness training and much more.

Target Audience

This course is designed for any employees that need a basic understanding of anti-money laundering and is available for AUD$99 (or less for bulk purchases).

Course Overview

After completing this course you will be able to: Define money laundering and counter terrorism financing Explain the principal stages in money laundering - placement, layering and integration Explain the techniques for money laundering at each stage Explain the background to the development of anti-money laundering legislation around

the world Explain the key money laundering and terrorism financing risk components Describe the main elements of any anti-money laundering program - customer

identification, employment screening, training and transaction monitoring and suspicious matter reporting

Describe the benefits of compliance and the potential consequences of non-compliance Recognise the red flags that could indicate unusual or suspicious behaviour Recognise the principal techniques used by money launderers Describe the key processes and technologies to fight money laundering Pass the learning assessment

Detailed Course Overview

Module 1: Overview of Anti-Money Laundering and Countering the Financing of Terrorism

Learning objectives What is Money Laundering and Terrorism Financing? What is the size of the Money Laundering and Terrorism Financing problem? The principal stages in money laundering - placement, layering and integration The techniques for money laundering at each stage A brief history of AML/CFT legislation Overview of AML/CFT legislation in New Zealand Two-phased approach to AML/CFT in New Zealand Exceptions of the AML/CFT Act 2009 Chronology of major advances in AML/CFT legislation Examples of Money Laundering and Terrorism Financing reported in the media. Why do criminals launder money? What are the consequences of money laundering Money laundering techniques

Module 2: Placement techniques

Which common placement techniques are used for money laundering? o Smurfing of cash deposits and structuring o Wire transfers o Alternative remittances o Asset conversion o Bulk movement o Gambling

Module 3: Layering techniques

Which common layering techniques are used for money laundering? o Electronic funds transfers o Offshore banks o Shell corporations o Trusts o Third party intermediaries

Module 4: Integration techniques

Which common integration techniques are used for money laundering? o Credit, debit and pre-paid cards o Buying and selling assets o Transfer pricing o Combining legal and illicit cash flows (and - audio not on screen text o Import and export businesses

Module 5: Summary of the AML/CFT Act 2009

Summary of the AML/CFT Act 2009 Key components of the AML/CFT Program

o Preliminary provisions o AML/CFT Requirements and Compliance o Enforcement o Institutional arrangements and miscellaneous provisions

 Module 6: AML/CTF Requirements and Compliance

Customer Due Diligence (CDD) o What are the types of customer due diligence? o When does each CDD standard apply? o What are the Know Your Customer (KYC) requirements for standard, simplified and

enhanced customer due diligence? o Conducting a money laundering and terrorism financing risk assessment o Ongoing customer due diligence and account monitoring o Reliance on third parties to conduct CDD on behalf of a reporting entity

Suspicious Transaction Reports Record Keeping Core Components of an AML/CFT Program

o The role and responsibilities of the AML/CFT Compliance Officer o Conducting independent reviews and audits of the AML/CFT Program o Preparing the annual AML/CFT Compliance Report

Module 7: Enforcement

What is a Civil Liability Act and what are the circumstances when this can occur? What actions can regulators take in enforcing compliance with the AML/CFT Act?

o Formal warnings o Enforceable undertakings o Injunctions o Pecuniary penalties

Civil penalties that can apply to individuals and corporations Criminal penalties that can apply to individuals

Module 8: The AML/CFT Regulatory Framework

What are the main bodies involved in oversight of AML/CFT and their roles and responsibilities? o New Zealand Police Commissioner o AML/CFT Supervisors

Reserve Bank of New Zealand (RBNZ) Securities Commission Department of Internal Affairs

o AML/CTF Co-ordination Committee o Minister of Justice o Governor-General

Module 9: Identifying the ‘red flags’ for unusual and suspicious behaviour

What is a ‘red flag’? What ‘red flags’ could occur during account opening? What ‘red flags’ could occur when monitoring transactions? What techniques can be deployed to identify unusual transaction activity? What actions must be taken if a reporting entity forms a suspicion of money laundering or

transaction monitoring activity?

Module 10: Identifying the ‘red flags’ for unusual and suspicious behaviour

What are the benefits of compliance? What are the potential consequences of non-compliance?

o What are the financial penalties that can be applied for non-compliance? o Reputation damage caused by non-compliance o Other potential impacts on business operations that could result from non-compliance.

At the end of the course there is a learning assessment to track the knowledge of the participant, which generates a certificate of completion once the user attains the required pass mark. The scoring and pass marks are fully auditable and can be provided to regulators to evidence that training has been conducted.