AML Training Program for Employees: Key Things to Consider in 2022

As the money-laundering and financial terrorism risks to which the companies are exposed is increasing day by day, the need for a better AML training program for the employees is also increasing. Providing an appropriate training program to the employees will help them to detect money-laundering red flags at an early stage. Along with other strategies and policies formulated to combat money laundering, AML
training for the employees also plays a pivotal role as it will guide the employees to detect and take down the money-laundering activities at an early stage. Below are some key points in the form of questions that must be considered before providing AML training to the employees in 2022:

What are the main objectives of the AML training program?

1. It helps the employees in defining and differentiating various financial crimes
and related risks.
2. Helps in describing the risk-based approach and concerned components.
3. It explains to the employees how the compliance roles work together.
4. Identifying risk management programs.

What all things must be focused on while providing AML training?

1. The company’s obligation under AML/CFT law
2. The consequence of non-compliance with AML/CFT laws
3. The money-laundering and financial terrorism risks to which the company is prone and the consequences of such risks
4. How to fulfill the obligations along with identifying, managing, and countering risks
5. Penalties to be paid if not complied with the AML laws including terms regarding employees’ termination, criminal and civil penalties, fines, imprisonment terms, etc. must also be focused during the training program.
6. Training employees regarding how to react when they confront any suspicious transactions or clients.
7. Describing accountabilities and responsibilities of the employees.
8. A proper training program must also include case studies based on true circumstances which may include how the threat was detected and how it was dealt with proper strategies.
9. Providing details regarding the activities and areas within a company that may be highly prone to money-laundering and financial terrorism risks.
Also read: Everything about UAE goAML Platform

Who needs AML training?

The company while preparing the training program plan, must identify those employees who need the training program such as new employees, promoted employees, senior managers, etc., the selection of employees also depends on the level of risks to which the company is exposed. The company must try to give the training to the employees on a regular basis and also it must try to provide training to board members, directors,
managers, and consultants who play a major role in providing distinguished services to the customers.

How to provide effective AML training to the employees?

The effectiveness of AML training depends on how the companies provide such training opportunities to the employees. There are many platforms which the company can adopt to provide the training. Such as on-site training, external training, online training, on-the-job training, induction training, etc. the companies must select the platform considering different factors such as the nature and type of employees, type of risk to which the company is exposed to, etc. it is always the best course to choose a combination of different platforms to provide effective training to the employees.

When should be the training given to the employees?

It is normally advisable to provide the employees training at least once a year which must be relevant to the prevailing regulatory framework and current circumstances of money -laundering risks of the company. A continuous or quarterly training can be provided to the personnel who are involved in high-risk functions and activities. In addition to the above-stated points, the companies must maintain proper records of those employees who have attended the training program and their skills must also be assessed after the training program to make sure if the program is effective. The dates and number of training sessions provided must also be documented and maintained.

These are the key points that must be kept in mind before planning and providing an AML training program to the employees.

You might also want to know, Top 5 mistakes that must be avoided while building AML compliance framework?

How can CDA help?

CDA is one of the leading professional auditing and accounting firms in Dubai with the highest ethical standards and which always focuses on providing personalized services to clients. CDA Accounting and Bookkeeping Services LLC Dubai always ensures that their clients comply with all the regulatory frameworks and maintain all the documents and records which are stated as mandatory by the respective authorities. CDA with its skilled team is always ready to render its services like bookkeeping services, vat services, tax consultancy wherever it is needed. For more details contact us.