Understand the importance of KYC, CDD, and EDD in AML/CFT compliance. Learn global standards and implement risk-based KYC processes to assess customer risk and identify high-risk clients.

Learning Objectives:

• Understand the critical role of KYC, CDD, and EDD in combating money laundering (ML) and terrorist financing (TF).
• Learn global regulatory frameworks and compliance obligations for KYC/CDD/EDD, including FATF guidelines.
• Develop skills to implement effective KYC processes to verify customer identities and assess risks.
• Master the techniques for conducting CDD for different customer profiles and identifying high-risk clients.
• Learn when and how to apply Enhanced Due Diligence (EDD) for high-risk customers and transactions.
• Understand the role of sanctions screening and ongoing monitoring in customer risk management.
• Learn how to maintain effective record-keeping and reporting mechanisms in compliance with AML/CFT regulations.

Course Outline:

Introduction to KYC/CDD/EDD and AML/CFT:

• Definition and importance of KYC, CDD, and EDD in the financial crime compliance framework.
• Global regulatory standards and best practices for customer identification and verification.

KYC Process:

• Steps to verify customer identity and assess their risk level.
• Key documents required for customer verification.
• Special considerations for corporate customers, trusts, and beneficial ownership.

Customer Due Diligence (CDD):

• Understanding CDD requirements based on customer type and risk profile.
• Risk-based approach to CDD and determining low, medium, and high-risk customers.
• Monitoring customer activity and periodic updates to CDD information.

Enhanced Due Diligence (EDD):

• Criteria for applying EDD (e.g., high-risk jurisdictions, politically exposed persons (PEPs)).
• How to conduct deeper investigations, including source of funds and source of wealth analysis.
• Ongoing monitoring and transaction review for high-risk customers.

Sanctions Screening and Transaction Monitoring:

• Screening customers and transactions against sanctions lists (e.g., OFAC, UN, EU).
• Using automated systems for effective monitoring of high-risk clients.

Record-Keeping and Reporting:

• Requirements for maintaining KYC and CDD records in compliance with AML/CFT laws.
• Filing Suspicious Activity Reports (SARs) when necessary.

Case Studies and Best Practices:

• Real-life examples of KYC/CDD/EDD in practice.
• Lessons learned from compliance failures and enforcement actions.

Duration:

2-3 Days (depending on the depth of case studies and practical exercises).

Level: Intermediate to Advanced

• Designed for compliance officers, risk managers, AML officers, and professionals involved in customer onboarding and transaction monitoring.

Prerequisite:

Basic understanding of AML/CFT principles and financial regulations.

Category:

• AML/CFT Compliance
• Risk Management/KYC and CDD