Fraud Risk Management and AML & CTF concepts

Ideal for Operational Staff, Business Unit Heads, Assurance Managers, Senior Management

About the event

Effective fraud risk management requires integrating written policies, defined responsibilities, and ongoing procedures into the organization’s framework. The Board and top management play pivotal roles in setting these policies, with established reporting mechanisms to monitor program performance. The organization’s commitment to fraud prevention is evident in its tone from the top. Similarly, AML/CFT policies are crucial for safeguarding financial markets and the global financial system, aiming to raise staff awareness of relevant money laundering and terrorism financing methods.

Objectives

Financial crime is one of the biggest causes of loss for organizations and it is perpetrated internally, externally and as a collusion. Types of financial crime include fraud, theft, Money Laundering, Robberies and many more. Efforts to manage financial crime need  to be embedded in an organization’s DNA in the form of written policies, defined responsibilities, and on-going procedures that implement an effective program. There needs to be a clear role for the Board and top management in setting these policies with reporting in place to convey the required information about the program and its performance to them. The tone from the top will be reflected in the perception of prevention and detection of financial crime throughout the organization. This training will equip Senior managers and Board members to identify and deal with most common gaps that perpetrators exploit.

Program Content

The program features a combination of workshop facilitation and panel discussions.

Day 1

Introduction:

• Understanding Financial Crime:
  • Overview of financial crime types, (money laundering, fraud, bribery, corruption, insider trading, and terrorist financing).
  • Examination of the global impact of financial crime on economies, businesses, and society.
  • Gaps that expose an organization to financial crime: Control lapses

Types of Financial Crime

• Anti-Money Laundering (AML):
  • Explanation of AML regulations and requirements imposed by regulatory bodies (FATF, FinCEN, and local authorities).
  • AML Procedures: Know Your Customer (KYC), Customer due diligence (CDD), Classifying customers, transaction monitoring and Reporting suspicious transactions.

• Fraud Detection and Prevention:
  • Common types of financial fraud, such as identity theft, payment card fraud, and embezzlement.
  • Implementing fraud detection techniques, internal controls, and reporting mechanisms to mitigate fraud risks.
  • Fraud Triangle: Pressure, rationalization and Opportunity.

• Bribery and Corruption Prevention:
  • Anti-bribery and corruption laws- International and Local laws (e.g the Foreign Corrupt Practices Act (FCPA) and UK Bribery Act, Anti-corruption & Economic Crimes Act, 2003, Kenya Act, Bribery Act, 2016, Kenya).
  • Detecting, preventing, and reporting bribery and corruption incidents within the organization and its business partners.

• Cybercrime and Cybersecurity:
  • Exploring cybercrime threats, including phishing attacks, ransomware, and data breaches, targeting financial institutions and organizations.
  • Implementing cybersecurity measures, such as encryption, multi-factor authentication, and security awareness training, to protect against cyber threats.

Day 2

• Insider Trading and Market Abuse:
  • Understanding regulations governing insider trading and market abuse,
  • Insider trading policies, reporting obligations, and the consequences of non-compliance.

Mitigating Financial Crime Risk

• Risk-Based Approach to Financial Crime:
  • Implementing a risk-based approach to financial crime management, including risk assessment, mitigation strategies, and monitoring mechanisms.
  • Tailoring compliance programs and controls to address specific financial crime risks faced by the organization.
• Conducting Investigations:
  • Techniques for conducting internal investigations into suspected financial crime incidents, including gathering evidence, interviewing witnesses, and documenting findings.
  • Ensuring investigations are conducted impartially, confidentially, and in accordance with legal and regulatory requirements.
• Regulatory Reporting and Compliance Documentation:
  • Understanding reporting obligations and requirements for financial crime compliance, such as suspicious activity reporting (SAR) and regulatory filings.
  • Developing comprehensive compliance documentation, including policies, procedures, risk assessments, and training records.

Training Methods

Facilitation, videos, case study and panel discussion.