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AIs play a crucial role in preventing money laundering, terrorist financing, and other illicit activities by conducting risk assessments. These assessments help identify and mitigate potential risks associated with their clients, products, services, and geographic locations. In this training summary, we will explore the key aspects of risk assessments that AIs need to comply with on as per the FIA obligations.
AIs are entities like Accounting, ADLA, Auctioneering, Banking, Casinos, Customs Clearing and Forwarding, Dealers in Jewellery and Antiques, Dealers in Precious Metals and Stones, Dealers in second Hand Goods, Legal Practitioners, Lending, Motor Vehicle Dealers, MVTS, NPO, Real Estate, Trusts and Company Services Providers, VASPS, which are required by law to implement anti-money laundering (AML) and counter-terrorist financing (CTF) measures.
Their primary responsibility is to ensure that their services are not used for illegal financial activities.
AIs must adhere to the legal framework and guidelines provided by the FIA.
Compliance with these regulations is essential to avoid legal penalties and reputational damage.
The following factors must be considered when conducting a risk assessment:
Product or services: Assess the risk associated with different products or services offered by your institution.
Customer: Assess the risk associated with different types of customers, including individuals, businesses, and PEPs.
Geographic area: Assess the risk associated with different geographic locations where the institution clients originate and where the business operates or conducts business.
Delivering channels: Assess the risk associated with different delivering channels such as non-face to face.
AIs should adopt a risk-based approach, by deploying more resources to higher-risk areas.
Allocate resources, conduct enhanced due diligence, and implement stricter monitoring for high-risk customers and products.
Accountable Institutions must keep records of the following:
Client Identification Records;
Records of Suspicious Transaction Reports submitted to the FIC.
Records must be kept for a period of at least 5 years, starting from the date of concluded transaction or business relationship terminated.
Develop independent audit functions to review the implementation of the FIA compliance policy, to test compliance with the measures taken by the AI to comply with this Act and the effectiveness of those measures.
Ensure that employees receive appropriate training on conducting risk assessments and AML/CTF measures.
Staff awareness is vital for effective implementation.
AIs must report suspicious transactions and activities to the FIC as required by law.
Failure to report can lead to serious legal consequences.
Continuously monitor and refine the risk assessment process based on feedback, regulatory changes, and emerging risks.
Conducting effective risk assessments is a critical component of an accountable institution's compliance with FIC regulations.
By identifying and mitigating risks associated with money laundering and terrorist financing, institutions contribute to the overall safety and integrity of the financial system.
Join us for our comprehensive Risk Assessment Training video, this informative session will equip you with the essential knowledge and skills necessary to assess and mitigate financial risks effectively.
Our training video will guide you through the intricacies of risk identification, evaluation, and management, tailored specifically to the dynamic landscape of financial intelligence. Whether you are a seasoned professional or new to the field, this video will empower you with the tools and insights needed to safeguard your institution against financial threats, ensuring compliance and security in an ever-evolving financial world.
Don't miss out on this opportunity to enhance your risk assessment prowess and protect your organization's financial integrity. Kindly watch the training video and complete the Risk Assessment quiz below.
Next Training: Risk Based Approach