Sound Management Of Risks Related To Money Laundering And Financing Of Terrorism and revised guideline to account opening

Question 1

When ?

Answer 1

Feb 2016

Question 2

what issues are discussed in Guidelines

Answer 2

MRRTCT

Risk Analysis and Governance.
Three Lines of Defence.
Customer Due Diligence and Acceptance.
Transaction Monitoring Systems and Ongoing Monitoring.
Management of Information.
Reporting of Suspicious Transactions and Asset Freezing.

Question 3

Key Points in Risk Analysis and Governance.

Answer 3

identify and analyse the risks to implement app control.
The Board and Senior Management approve and oversee policies for risk.
board should appoint a qualified chief
AML officer with overall responsibility for the AML function

Question 4

what is the first line of defence

Answer 4

The Line of Business-
creates, implements and maintains policies.
Communication of these to all personnel.
processes for screening employees
deliver appropriate training on AML policies

Question 5

what is the second line of defence

Answer 5

AML Compliance Function

Exception report

Question 6

what is the third line of defence

Answer 6

Audit Function-
Periodic assessments for risk mangt and controls.
The adequacy of the bank’s controls to mitigate the identified risks

Question 7

Key Points in Reporting of Suspicious Transactions and Asset Freezing:

Answer 7

When unusual activity indentified from Ongoing monitoring, such activity to be report to internal review function, eliminate false positives and report suspicious activity in a timely and
confidential manner.

Banks should scan both new and existing customers against the sanction list .

Question 8

Key Points in Management of Information

Answer 8

CDD information should be kept up to date and accurate, periodically assessing based on Risk based frequency.