CAMS STUDY GUIDE

Chapter Content 26%

1 Risks and Methods of Money Laundering and Terrorist Financing

25%

2 International AML/CFT Standards

28%

3 AML/CFT Compliance Programs

21%

4 Conducting and Responding to investigation

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 CAMS STUDY GUIDE

2 International AML/CFT Standards

 Financial Action Task Force

 Basel Committee on Banking Supervision

 European Union Directives on Money Laundering

 FATF-Style Regional Bodies

 Egmont Group of Financial Intelligence Units

 Wolfsberg Group

 World Bank and IMF

 USA PATRIOT Act

 Office of Foreign Assets Control

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 International AML/CFT Standards

Financial Action Task Force

What is It?

 Intergovernmental body with 35 member countries and 2

international organizations
 Sets money laundering and terrorist financing standards

Important Documents

 40 Recommendations on ML and TF (Last updated

February 2012)

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 International AML/CFT Standards

Basel Committee on Banking Supervision

What is It?

 Established by the central bank governors of the G-10

 Promotes sound supervisory standards worldwide

Important Documents

 Customer Due Diligence for Banks Paper (2001)

 General Guide to Account Opening and Customer
Identification (2003, updated 2016)
 Consolidated KYC Risk Management Paper (2004, updated
2016)
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 International AML/CFT Standards

European Union

What is It?

 A politico-economic union of 28 member states that are located

primarily in Europe
 Issues AML/CFT directives regarding legislation that member
states must issue to prevent their domestic financial systems
being used for money laundering and terrorist financing
Important Documents
 1st EU Directive (1991)
 2nd EU Directive (2001)
 3rd EU Directive (2005)
 4th EU Directive (2015)
 5th EU Directive (2018)
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 International AML/CFT Standards

Wolfsberg Group

What is It?

 Association of 13 global banks

 Aims to develop standards on money laundering controls
for banks

Important Documents

AML Principles for Private Banking (2012)

The Suppression of the TF Guidelines (2002)
AML Principles for Correspondent Banking (2014)

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The Wolfsberg Group is an association of 13 global banks

Banco Santander Goldman Sachs

Bank of Tokyo-Mitsubishi
HSBC

Bank of America
J.P. Morgan Chase
Barclays

SCB
Citigroup

Société Générale
Credit Suisse

Deutsche Bank UBS

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 International AML/CFT Standards

Egmont Group

What is It?

 Informal networking group of financial intelligence units

 international organizations Sets money laundering and
terrorist financing standards

Important Documents
 Statement of Purpose (last updated 2004)
 Principles for Information Exchange Between FIU for ML
Cases (2001)
 Best Practices for the Exchange of Information Between
FIU (2004)

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 International AML/CFT Standards
World Bank
International Monetary Fund

What is It?

 These organizations work together and in conjunction

with FATF to encourage countries to have adequate
AML laws and to review AML laws and procedures of
FATF member countries .

Important Documents
 Reference Guide to Anti-Money Laundering and
Combating the Financing of Terrorism: A Manual for
Countries to Establish and Improve Their Institutional
Framework 2002 (revised 2007)

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 Regional AML/CFT Standards

What is It?

 FATF-style regional bodies that have similar form and

functions to those of FATF
 Provide input to FATF on standards and typologies

Important Documents

 Typologies, etc

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Key US Legislative and Regulatory Initiatives
Applied to Transactions Internationally :

 USA PATRIOT Act

 Office of Foreign Assets Control

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Title III : International Money Laundering Abatement and Anti-Terrorist
Financing Act of 2001
USA PAtriot Act

Section 311 Special Measures for Primary Money Laundering Concern

Section 312 Special Due Diligence for Correspondent and Private Banking Accounts

Section 313 Prohibition on U.S. Correspondent Accounts with Foreign Shell Banks

Section 314 Cooperative Efforts to Deter Money Laundering a. FI to Law Enforcement

b. FI to FI

Section 319 Forfeiture of Funds in U.S. Interbank Accounts a. Forfeiture b. Record

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 Legal framework : Bangladesh

 Money Laundering Prevention Act, 2012 (Amendment-2015)

 Anti Terrorism Act, 2009 (Amendment 2012 &2013)

 Mutual Legal Assistance on Criminal Matters Act, 2012

 Money Laundering Prevention Rules, 2019

 Anti Terrorism Rules, 2013

 Mutual Legal Assistance on Criminal Matters Rules, 2012

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 Regulatory framework for Bank: Bangladesh

There are 18 Guidelines have already been published by BFIU

Among the guidelines, the following are most important for Bank : BFIU

 Guidelines on Money Laundering & Terrorist Financing Risk Management Guidelines for
Banks -2015

 Money Laundering and Terrorist Financing Risk Assessment Guidelines for Banking
Sector -

 Guidelines on Implementation of The UN Security Council Resolutions Concerning

Targeted Financial Sanctions, Travel Ban, And Arms Embargo
 Guidelines for Prevention of Trade Based Money Laundering-2019

Important Circular :

 BFIU Circular No. 26, dated 16/06/2020 : Instructions to be followed by the schedule
banks for prevention of money laundering, terrorist financing and proliferation financing.

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