5 CPD
Course Description
‘Know your customer’ (KYC) is a systematic process that obliged entities need to carry out to identify and verify the potential customer’s identity. This course explains in detail KYC and the importance of KYC and CDD checks. KYC is crucial for maintaining the integrity of the financial system, ensuring compliance with regulatory requirements, and protecting the obliged entity from reputational and financial risks.
Proper customer identification and verification enable institutions to assess the risk associated with their customers. Understanding the identity, background, and activities of customers, obliged entities can evaluate the level of risk they pose and implement appropriate risk mitigation measures. This helps prevent money laundering, terrorist financing, fraud, and other illicit activities.
Failure to meet KYC & CDD compliance requirements can lead to a criminal conviction, a fine or even a prison sentence. Both companies and responsible individuals can be found guilty of not fulfilling KYC & CDD requirements in compliance with AML legislation.
In 2021, NatWest was fined £265 million for failing to prevent £400 million being laundered by one of its clients. In 2021, the Financial Conduct Authority (FCA) fined HSBC Bank Plc £63,946,800 for weaknesses in the bank’s automated transaction monitoring system. According to the United Nations Office of Drugs and Crime between 2% and 5% of global Gross domestic product (GDP) is laundered around the world each year. That’s between $800 billion and $2 trillion.
Non-compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations can have serious consequences for obliged entities, businesses, and individuals. AML and KYC regulations are designed to prevent money laundering, terrorist financing, and other financial crimes.
This course also explains the steps for Customer Identification and Verification for different type of clients.
In addition, this course explains the CDD process. CDD as the process of collecting, verifying, and assessing information about a customer to evaluate their risk profile. It includes identifying and verifying the identity of customers, understanding the nature and purpose of the business relationship, and continuously monitoring the customer’s transactions to detect and report suspicious activities.
CDD includes not only establishing the identity of customers, but also establishing a baseline of account activity to identify those transactions that do not conform to normal or expected transactions.
In the context of Anti-Money Laundering (AML), both KYC (Know Your Customer) and CDD (Customer Due Diligence) are critical processes that obliged entities must follow to prevent money laundering and other financial crimes. However, there are some key differences between KYC and CDD. This course explains the difference between KYC and CDD. KYC is a process for collecting personal data and verifying identity – CDD is a process of assessing the risk level and conducting ongoing monitoring.
There are three levels of CDD for obliged entities. Which one you use impacts the process listed below. They are (a) Simplified Due Diligence, (b) Standard Due Diligence and (c) Enhanced Due Diligence.
This course also analyses the steps to conduct CDD, when an obliged entity is required to conduct CDD as well as the timing of application of CDD.
Topics covered
The course is split into the following sections:
Section 1: Understanding Money Laundering
- What is Money Laundering
- Money Laundering offences
Section 2: In depth analysis of Know Your Client (KYC)
- What is KYC
- Why are KYC checks (& CDD) Important?
- Which risks are mitigated by KYC
- What are the consequences of non-compliance with AML and KYC regulations?
- When Should You Conduct a KYC Check?
Section 3: Customer Identification and Verification
- Practical Steps for Customer Identification and Verification
- Client Identification & Verification for different type of clients
Section 4: In depth analysis of Customer Due Diligence (CDD)
- What is Customer Due Diligence (CDD)?
- What is the difference between KYC and CDD in Money laundering?
- What are the Customer Due Diligence obligations?
- What Are the Different Types of Customer Due Diligence?
- How Do You Conduct Customer Due Diligence?
- When obliged entities should apply customer due diligence and identification procedures?
- Timing of application of customer due diligence and identification procedures
- Risk Assessment and Profiling
- Why Risk assessment and profiling play a crucial role in the KYC/CDD process?
- Practical Steps for Risk Assessment and Profiling
- Client due diligence checklist
Course Duration:
This course may take up to 5 hours to be completed. However, actual study time differs as each learner uses their own training pace.
The course is addressed to:
This course is addressed to all individuals who practice Anti-Money Laundering or interested to learn or enhance their knowledge in Money Laundering such as:
- Compliance/AML Managers and staff in Banks, Investment Firms, Investment Funds, ASPs, Trust Service Corporate Providers, Accountants, Auditors and Lawyers.
- Employees of Banks, Investment Firms, Investment Funds, ASPs, Trust Service Corporate Providers, Accountants, Auditors, Law Firms and professionals who are involved or interested to learn or enhance their knowledge in Money Laundering.
- Executive Directors, Non-executive directors, Senior Managers, Compliance Officers, Risk Managers, Product Managers, Portfolio Managers, Investment Advisors, Dealers, Marketing Managers and in general employees of investment firms, funds, ASPs, Law firms, Accountants, Auditors.
- Internal Auditors
- Consultants
- Lawyers
It is also suitable to professionals pursuing CPD in Anti-Money Laundering for the renewal of CySEC Certificate (CySEC Basic or CySEC Advance Certificate or CySEC AML Certificate) or other relevant certificates in other jurisdictions.
Training Method
The course is offered fully online using a self-paced approach. The learning units consist of power point presentations. Learners may start, stop and resume their training at any time.
At the end of the course, participants take a Quiz to complete the course and earn a Certificate of Completion once the Quiz has been passed successfully.
Accreditation and CPD Recognition
The course can be accredited by regulators and other bodies for 5 CPD Units that require CPD training in Anti-Money Laundering. The course may be also approved for up to 5 CPD Units by institutions that approve general financial and AML training, such as the CySEC, ICPAC, CBA, CISI, ICA and ACAMS.
Eligibility criteria and CPD Units are verified directly by your association or other bodies in which you hold membership.
Registration and Access
To register to this course, click on the Take this course button to pay online and receive your access instantly. If you are purchasing this course on behalf of others, please be advised that you will need to create or use their personal profile before finalizing your payment.
Access to the course is valid for 90 days.
If you wish to receive an invoice instead of paying online, please Contact us by email. Talk to us for our special Corporate Group rates.
Instructor
George Papanicolaou has more than 20-years experience in the Financial industry. He worked for several years in managerial positions as area Manager, Head of Brokerage, Compliance Officer, Anti Money Laundering Officer, General Manager and Executive Director in Cypriot Investment Firms as well as Managing Director of GP GLOBAL LTD offering consulting services and training courses to Investment Firms, focuses in Internal Audit, compliance & AML issues. He offered numerous courses/seminars both in Cyprus and abroad in Investment Firms Law as well as in Compliance & Anti Money Laundering. George Papanicolaou is also a Chairman of a Nomination Committee in a company listed in the Oslo Stock Exchange.
George Papanicolaou holds a BSc in Electronic Engineering from the University of Texas at Austin (USA), an MBA with specialization in Finance from Leicester University (UK) and a Postgraduate Certificate in the Mechanics of Risk Management from Middlesex University (UK).
He also holds an ICA International Diploma in Anti Money Laundering from the International Compliance Association and the University of Manchester, as well as an Advance and Money Laundering certificate from the Cyprus Securities and Exchange Commission for the provision of investment services/activities.
He is a Member of the AML and Compliance Committee of the Institute of Certified Public Accountants of Cyprus (ICPAC), Fellow of the International Compliance Association (FICA), Mentor of ICA new students, member of the Cyprus Institute of Internal Auditors and the first Network chair for Cyprus of the International Compliance association.
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