Today the number of people and the demand for services has increased tremendously. For this reason, a person who provides the desired services can quickly become rich. A significant amount of money is obtained illegally, although often by legitimate means. Transferring this money to the legal system is called money laundering.
2020 AML statistics of United Nations states that 90% of laundered money cannot be detected. It is a problem for the recorded economy and development plans. If a country cannot predict the actual amount of its money, it will face wrong planning. According to the United Nations, between $800 billion and $2 trillion money is laundered each year worldwide. It equals 2% and 5% of annual worldwide GDP.
There are several things to do to decrease that amount. However, one of the most important is increasing the awareness that the anti-money laundering team is at the forefront with training. Training plays a crucial role in preventing money laundering and financial crime. Even the Financial Action Task Force(FATF), which was established in 1989 with the G-7 countries within the body of the OECD, highlighted the importance of anti-money laundering training. FATF published 40 recommendations for preventing money laundering and financial crime. According to the 15th recommendation of FATF40, developing internal policies, procedures, and controls, continuous employee training should be carried out.
Points to Consider Before Training
The company that wants to provide training should seek answers to some questions before starting the training. Thus, it will reach the right target with the proper budget, participation, and training content.
•What messages are you trying to convey in your education?
•What kind of work does my industry involve?
•What are the problems our business is facing?
•What are the risks for our business to solve?
•What are employees need to know?
•What do employees need to do differently?
•Are there any positions that pose a high risk that has extra training needs?
•May traditional classroom training combined with new media technologies increase efficiency?
•Are we active in the field or the office?
•Does our employee like long training sets or short training modules spread over time?
Key Points About Training
Money launderers always look for a more convenient way to launder their dirty money by continuously taking advantage of legal loopholes. We should know these loopholes very well through training. Also, our training program should include up-to-date and latest regulations to get ahead of money launderers following the latest changes and leave them in a difficult situation.
This training should be mandatory for people who directly contact people at high risk of money laundering such as Banks' Compliance, Audit, Foreign Trade, and Exchange Officers, Investment Banks Employees, Fund Managers, Precious Metals Exporters, International Transport Companies, Foreign Exchange Traders.
AML training must be comprehensive and include a general theme about obligations under AML/OFAC, Know Your Customer, Know Your Employee, Rating Scale of Suspicious Transactions, Rating Scale of Risky Customer, AML/OFAC risk assessments, due diligence, measures for PEP, and current regulations. After that training, trainees will be familiar with the AML ecosystem and have more awareness about money laundering, fraud, and financial crime.