Introduction
The programme “Techniques for Combating Money Laundering Risks in Banking Institutions” develops professional practice in Risk and Credit. It connects the subject with workplace challenges by examining existing evidence and practices and choosing methods appropriate to the organization and its available resources.
The learning progresses from anti-money laundering, due diligence, and reporting to financial statement and report analysis, with practical work on credit analysis and banking risk, fraud prevention, warning sign detection, and integrity protection, risk assessment, controls, and response. Participants prepare outputs to support workplace application and review the quality and results of implementation.
Learning objectives
- Design due diligence, monitoring, and escalation controls proportionate to the case's risks in an application related to “Techniques for Combating Money Laundering Risks in Banking Institutions”.
- Prepare a credit analysis and risk scenario showing repayment capacity and controls.
- Distinguish suspicious indicators and design a professional response that preserves evidence and confidentiality.
- Prepare a risk register connecting causes, consequences, controls, and treatment responsibilities.
- Interpret performance, financial position, and cash flows using documented analysis with clear limitations.
Learning areas
1. Anti-Money Laundering, Due Diligence, and Reporting
- Understand the relationship between money laundering and terrorist financing risks and the customer, product, channel, and country, without applying a single threshold in every environment.
- Define identification data for the customer and beneficial owner and the purpose of the relationship, with verification and updating under applicable local instructions.
- Design monitoring indicators suited to expected transaction patterns, distinguishing alerts requiring examination from events established by evidence.
- Define the process for alert review, escalation, and reporting to the competent authority, maintaining confidentiality and reviewing requirements against tipping off the customer.
- Prepare a training case using fictional data, including rationale, documents, and retention and follow-up procedures, and review control and training effectiveness. The application examines a case related to “Techniques for Combating Money Laundering Risks in Banking Institutions”.
2. Credit Analysis and Banking Risk
- Analyze the financing purpose, repayment sources, and nature of the business, and review the financial and nonfinancial data needed to assess the customer.
- Assess cash flows, debt servicing capacity, and collateral, distinguishing the primary repayment source from supplementary protections.
- Classify relevant credit, market, liquidity, and operational risks, considering the applicable regulatory framework and internal policies.
- Test the effects of changes in revenues, prices, and maturities on repayment capacity, and define conditions and monitoring requirements addressing the identified risks.
- Prepare a documented recommendation covering limits, assumptions, information gaps, and warning indicators without turning the training case into an actual financing decision.
3. Fraud Prevention, Warning Sign Detection, and Integrity Protection
- Analyze exposure to fraud and conflicts of interest in the process, and distinguish errors, suspicious indicators, and established facts.
- Identify warning signs in transactions, authorities, and data, and design analytical checks that support verification without making accusations.
- Review segregation of duties, approvals, reconciliations, and system permissions, and assess their effectiveness in prevention and detection.
- Define reporting, escalation, evidence preservation, and confidentiality procedures, and review local legal requirements before taking investigative action.
- Prepare a case study covering indicators, additional data required, and a plan for correcting controls and monitoring the response.
4. Risk Assessment, Controls, and Response
- Define the work context, objectives, and assessment boundaries, and distinguish the risk source, potential event, and effects on results.
- Gather risks from processes, data, past incidents, and interviews with responsible staff, and document causes and existing controls.
- Estimate likelihood and impact using stated criteria, and review control effectiveness to determine residual risk levels.
- Select a response proportionate to the risks, resources, and authority, and specify the owner, deadline, and early warning indicator.
- Test a scenario involving changing circumstances, update the risk register, and present material risks and required decisions to the appropriate authority.
5. Financial Statement and Report Analysis
- Read the relationships between the statements of financial position, performance, and cash flows and the notes, identifying the effects of accounting policies and estimates.
- Perform horizontal and vertical analysis and compare profitability, liquidity, efficiency, and leverage indicators, considering the nature and size of the business.
- Examine earnings quality, cash flows, and nonrecurring items, and identify differences between accounting results and actual liquidity.
- Test the sensitivity of results to changes in sales, costs, collections, and financing, stating the assumptions and constraints in each scenario.
- Write a financial report linking indicators to management's question and available alternatives, presenting risks and additional data needed for the decision.
Practical outputs
- A customer risk matrix, due diligence checklist, and suspicion escalation process.
- A credit memo, risk register, and early warning indicators.
- A matrix of suspicious indicators and controls, and an evidence preservation and escalation checklist.
- A risk register, control matrix, and prioritized treatment plan.
- A comparative financial analysis report and a memo of findings and assumptions.
Who should attend
- Practitioners, specialists and supervisors whose work relates to the programme subject.
- Managers and teams working in risk and credit, according to their practical responsibilities.
- Professionals responsible for applying the outputs of “Techniques for Combating Money Laundering Risks in Banking Institutions” within their organizations.
Prerequisites
- Working familiarity with the programme field and the ability to discuss a professional case or challenge.
- Confirm the suitability of your experience and any specialist prerequisites with the Union before participation.
Conclusion
The programme “Techniques for Combating Money Laundering Risks in Banking Institutions” brings together concepts, case review and a practical application. Participants prepare steps that can be adapted to their responsibilities and organizational resources, with an indicator to follow application and review results after returning to work.
Participation arrangements and any special requests are specified in the confirmation issued by the Union.