Course Information
Date :
Time : 9:00am – 5:00pm
Duration : Full Day
Accredetation :
SIDC CPE points:
Programme Overview
The full day training session is part of series of anti-money laundering, counter terrorism financing and targeted financial sanctions trainings which is imposed under Section 19 (2) (b) of the Malaysian Anti-Money Laundering, Anti-Terrorism Financing & Proceeds of Unlawful Activities Act 2001 (AMLA 2001) on Investment Banks.
The training session cum refresher covers the offences of money laundering, terrorism financing and targeted financial sanctions under AMLA 2001 including reporting obligations, reported cases and measures taken by Bank Negara Malaysia, Securities Commission in prevention of money laundering and terrorism financing in Malaysia.
The training session is designed for Investment Banks in order for them to gain further insight into emerging trends of money laundering and terrorism financing to establish an effective global compliance.
To encourage interaction and assist the participants to connect to the subject matter, the training session uses practical examples with an ultimate objective of strengthening “Compliance” in protecting the capital market industry.
In supporting AMLA integrity and market conduct requirements, this program also covers protection to Financial Data and Personal Data as advocated in Personal Data Protection Act 2010 and Personal Data Protection Code of Practice For Banking & Financial Sector.
Programme Objective
Upon completion of the above programme, participants will be able to:
- Identify the importance of key sections under AMLA 2001 and its reporting obligations towards improving governance and transparency in Reporting Institutions.
- Recognize the need to balance business & compliance by implementing Risk Based Approach on its policies & procedure to manage, identify, assess, profile, mitigate and monitor the risk of money laundering, terrorism financing and proliferation financing.
- Analyze the due diligence process towards verifications of beneficial ownership in business entities and politically exposed persons.
- Examine the need for “integrity” towards improving Financial and Personal Data protection in the investment banking sector.
Programme Outline
OVERVIEW OF AML/CFT REGULATIONS IN MALAYSIA
- Implementation of targeted financial sanction relating to Proliferation Financing.
- Latest status of AML/CFT regulations in Malaysia and the need for Reporting Institutions to comply with the requirements & standards.
- Increase in Reporting Institutions under 1st Schedule and Predicate Offences under 2nd Schedule of AMLA 2001.
- Issuance of Technical Notes as mechanism to provide clarification and guidance to Reporting Institutions.
- Summary of National Money Laundering & Terrorism Financing Risk Assessment (NRA) 2017.
- Malaysia’s role & measures taken as a member of Financial Action Task Force & Asia Pacific Group on AML/CFT.
ANTI-MONEY LAUNDERING, ANTI-TERRORISM FINANCING & PROCEEDS OF UNLAWFUL ACTIVITIES ACT 2001 [AMLA 2001]
- Key provisions under AMLA 2001 as a “tool” to investigate, freeze, seize & forfeit suspected money laundering or terrorist funds in high profile cases.
- Reporting institutions obligations & governance in AMLA 2001 & impact of non-compliance.
- Importance of transparency in submitting Suspicious Transactions Reports (STR) & Cash Threshold Reporting (CTR) to Financial Intelligence & Enforcement Department, Bank Negara Malaysia within specified period.
- Importance of transaction monitoring as part of the requirements under Section 14 and Section 16 of AMLA 2001.
MONEY LAUNDERING RISK IN MALAYSIA
- Is the current KYC deployed by Reporting institutions enough to deter & detect new typologies in money laundering activities?
- Challenges in interviewing customers during on boarding process and during clarification of suspicious transactions.
- The ability to identify usage of mule accounts, nominee accounts, beneficial owners, illegal financial scheme and legal arrangements to mitigate money laundering risk.
- Importance of reporting institutions to monitor customers as the transactions pattern may change resulting in higher risk profile.
TERRORISM FINANCING & TARGETED FINANCIAL SANCTIONS RISK IN MALAYSIA
- Importance of having an effective frontline system to identify possible entities/individuals that are blacklisted/sanctioned in UN/OFAC list during on-boarding & on-going monitoring process.
- Possibility of terrorism financing risk in capital market and the need to risk profile products to mitigate such risk including proliferation financing risk.
- Counter terrorism strategy via legislative & rehabilitative approach – can it work?
IMPLICATION OF NON-COMPLIANCE ON REPORTING INSTITUTIONS
- Serious reputation damage which might lead to a possible merger or revocation of license.
- Regulatory fine which could affect profitability or shareholders confident in the financial service provider.
- Imprisonment / removal from key position by Regulators.
ANTI-MONEY LAUNDERING, COUNTERING FINANCING OF TERRORISM AND TARGETED FINANCIAL SANCTIONS FOR DESIGNATED NON-FINANCIAL BUSINESSES AND PROFESSIONS (DNFBPS) & NON-BANK FINANCIAL INSTITUTIONS (NBFIS) (AML/CFT AND TFS FOR DNFBPS & NBFIS)
- Application of Risk Based Approach via risk assessment, risk profiling and risk mitigation.
- Monitoring of customers based on risk profile and the need for constant review and updates to ensure the risk level is line with customer pattern of transactions/activities.
- Risk on reliance on third parties to complete customer due diligence and the ability to continuously apply materiality and risk on customer.
SC GUIDELINE ON PREVENTION OF MONEY LAUNDERING & TERRORISM FINANCING FOR CAPITAL MARKET INTERMEDIARIES
- Implementation of Risk Based Approach – the difference between business-based assessment and relationship-based assessment.
- Applying customer risk management and mitigation control measures including continuous application and documentation of RBA process.
- Customer due diligence (CDD) at different stages and determining when to implement enhanced CDD measures.
EXERCISES & REVIEW OF REPORTED AMLA 2001 CASES
- Brief insight into high profile cases in Malaysia.
- Practical exercise to improve application of AML/CFT regulations.
PERSONAL DATA PROTECTION ACT 2010 (PDPA 2010)
The challenges in managing personal data in commercial transactions & importance of implementing the 7 Principles of Data Protection under PDPA 2010 :-
- The General Principle
- The Notice and Choice Principle
- The Disclosure Principle
- The Security Principle
- The Retention Principle
- The Data Integrity Principle
- The Access Principle
PDPA CODE OF PRACTICE FOR BANKING & FINANCIAL SECTOR
Application of the 7 Principles of Data Protection under PDPA 2010 in the banking sector.
- Possible penalties imposed for non-compliance and the impact on the Bank