CPD: Managing your AML risk: risk modelling and business risk assessment

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General information

22 July 2020
17:00–19:00 CET

Webinar topics

Part 1(a) - An introduction
  • A basic introduction to AML/CFT
  • An introduction to the Risk Based Approach Regulation
  • The importance of a Risk Appetite Policy
    • Why do we need it?
    • Who should approve it?
    • What should be in it?
    • Who should be aware of it?
    • Why do we need a Risk Based Approach?
Part 1(b) - Identification of risks - The main risk pillars
  • First risk pillar: customer risk
  • Review of the customer risk pillar
    • Sanction screening obligations
    • Adverse media screening
    • Financial crime screening
    • PEP screening
    • Dealing with PEPs
  • Channel risk
    • Face-to-face
    • Non face-to-face
    • The use of technological tools
  • Review of service risks
    • Taking into consideration the national risk assessment
  • Jurisdiction risks
    • Low risk and medium risk jurisdictions
    • High risk jurisdictions
    • Non-reputable jurisdictions
    • WCI & Basel Index
    • The importance of the country risk reports
    • Dealing with Iran and North Korea
  • Other risks
Part 1(c) - Mitigation techniques
  • Mitigation techniques used for:
    • Customer Risk
    • Channel risk
    • Service risk
    • Jurisdiction risk
Part 1(d) - Understanding the risk scoring within a client risk assessment:
  • The concept of risk weighting
  • The concept of overriding of risk
  • Finding the right balance
  • The use of scoring vs the use of combinations of factors
  • Building the right risk model for your business
Part 1(e) – The business risk assessment
  • Introduction to the regulation related to the need to have a BRA in place;
  • Contents of the BRA;
  • Difference between inherent risk and residual Risk;
  • Drafting the inherent risk matrix;
  • Testing the mitigation level;
  • Arriving at the residual risk calculation;
  • Who shall approve the BRA?

Learning objectives

At the end of this seminar participants should be able to:

  • Have an enhanced understanding of the risk based approach;
  • Understand requirements in relation to client risk assessment;
  • Draft their own business risk assessment or improve it.

Target audience

The workshop is ideal for compliance officers, money laundering reporting officers, individuals working in AML, internal auditors, risk officers and self-employed subject persons such as notaries and lawyers. Experience in AML/CFT field is recommended.

Trainer name

Mr John Caruana

Trainer(s) bio and experience

John has over 10 years of experience within the financial services industry in compliance, MLRO, Directorships of collective investment schemes, FX trading, Hedging, and investment advice. He graduated with Honours in Banking & Finance in 2008 and achieved a Master of Science in Banking & Finance in 2015 where he was awarded an Honors Roll by the University of Malta and best dissertation award by the Malta Stock Exchange. In July 2018, John was the first Maltese resident to be awarded two qualifications in Data Privacy by the International Association of Privacy Professionals (IAPP) being the Certified Information Privacy Professional / Europe (CIPP/E) and Certified Information Privacy Manager (CIPM). John currently holds a position of Head of Compliance within a local Audit Group. He is a fellow member of the Malta Compliance Officers Association (MACO) and a member of the International Association of Privacy Professionals.