Lesson 9 of 9

Module 09: Awareness and Training

Juno Education

Why is AML Awareness Important?

There are significant political, economic, and social costs associated with money laundering,
which has ties to both organized crime and terrorist groups and is associated with significant
political, economic, and social costs. In addition to the moral imperative to prevent money
laundering, many organizations, particularly in the financial services industry, have a
regulatory obligation to do so. Awareness and compliance with anti-money laundering
regulations are crucial components of meeting regulatory requirements. Employees should be
aware of anti-money laundering practices so they can identify AML risks in their day-to-day
responsibilities. E ective AML training facilitates this for organizations.
AML General Awareness Training learning objectives:

Define and distinguish the various financial crime risks

Describe the risk-based strategy and its constituent elements.

Describe how compliance roles collaborate to mitigate risk.

Determine the necessary risk management programs

Who needs to be trained and how often?

Employees should be "...provided with ongoing training on identifying a transaction or other
activity that may be related to money laundering or terrorist financing, and on how to proceed
once such a transaction or activity is identified," according to the anti-money laundering
legislation. Any individual employed at the firm, either as a permanent member of sta or as a
subcontractor, who is engaged in providing accounting services to clients, ranging from
bookkeeping and payroll to tax returns and audit work, is considered a relevant employee. The
ACCA has interpreted the regulations' requirement for periodic and regular training as meaning
as often as necessary, with a minimum expectation of providing training to relevant employees
once a year and whenever the regulations are updated. All new employees must receive training
as soon as it is reasonably possible.

What is the purpose of AML training?

AML training must equip employees with the skills necessary to recognize red flags and
suspicious activity. Employees must understand their legal responsibilities to identify and report
suspicious activity. If employees can do this much, then Ireland will become a more hostile
environment for criminals to successfully launder money.
Employees should be "...provided with ongoing training on identifying a transaction or other
activity that may be related to money laundering or terrorist financing, and on how to proceed
once such a transaction or activity is identified," according to the anti-money laundering
legislation. Any individual employed at the firm, either as a permanent member of sta or as a
subcontractor, who is engaged in providing accounting services to clients, ranging from
bookkeeping and payroll to tax returns and audit work, is considered a relevant employee. The
ACCA has interpreted the regulations' requirement for periodic and regular training as meaning
as often as necessary, with a minimum expectation of providing training to relevant employees
once a year and whenever the regulations are updated. All new employees must receive training
as soon as it is reasonably possible.

What is the purpose of AML training?

AML training must equip employees with the skills necessary to recognize red flags and
suspicious activity. Employees must understand their legal responsibilities to identify and report
suspicious activity. If employees can do this much, then Ireland will become a more hostile
environment for criminals to successfully launder money.
What does my rm need to do?
ACCA expects firms to adopt a training program that is, first and foremost, relevant to the
accounting industry and, second, relevant to the types of client services o ered. At a bare
minimum, training should cover the following areas:

AML red flags

Explaining the law and regulations in the context of the company's business
operations.

Perform customer due diligence (CDD).

SARs and suspicious transaction management

 Tipping o

Record keeping

Do we still need to do this if we have a small practice and know each client personally?
This is required of all practicing members, regardless of the size of their practice or the nature
of their clients. Money laundering is a common occurrence that can occur at any time. Criminals
who seek to launder the proceeds of crime or commit tax evasion are persistently on the lookout
for new, e ective means of doing so. It is essential, therefore, that all accountants be trained to
be vigilant and to monitor their clients for any suspicious activity, regardless of who they are. It
is important to note that criminals are more likely to target a small practice. They may assume,
correctly or incorrectly, that their AML controls will be less e ective than those of a large
company with more resources.