Objectives of AML/CFT Training and Awareness Program

The IFSCA (AML, CFT, & KYC) Guidelines, 2022, mandate the regulated entities to develop and implement a robust AML/CFT training program for all its relevant employees. The AML training must be designed considering the nature of the business, customers and products/services the entity deals with, the entity’s identified ML/FT risk and vulnerabilities, etc.

The AML/CFT training must ensure that all the core aspects necessary to identify and combat money laundering and terrorism financing are discussed, which enables the employees to:

1. understand the applicable AML/CFT regulatory landscape, specifically the IFSCA (AML, CFT and KYC) Guidelines, 2022
2. grasp the internal AML/CFT policies, procedures, systems and controls developed and deployed by the entity, including its periodic amendments
3. Realize own roles and responsibilities around AML when dealing with customers or handling transactions which may be associated with financial crime typologies
4. thoroughly understand the red flags and ML/FT trends specific to the industry in which the entity operates
5. timely detection of suspicious activities that may involve proceeds of crime or any association with financial crime
6. responsibly report the observed risk indicators to the AML Principal Officer
7. evaluate and comprehend the international best practices that may enhance the effectiveness of the implemented AML program

Employee contribution and engagement at all levels are significant for the efficacy of the AML measures. Hence, the training session must include the entity’s senior management, operational staff, employees who engage with customers or manages business relationship, and any other employee who is expected to encounter any potential financial crime risk during regular business activities. For new employees, the regulated entity must ensure that AML training and awareness session is conducted at the earliest possible post-joining.

Here is an infographic that enlists the core objective of the AML training program, which the IFSCA-regulated entities must endeavour to achieve.

Let AML India be your AML/CFT training partner, ensuring your team is well-aware and well-trained to implement the AML program to detect and deter ML/FT threats.