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Challenges in AML Investigation

By
Madhura Phadtare
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aml investigation

Every organization needs AML Investigation. The people who are working in the financial service industry are aware of the Anti-Money Laundering Compliance and Investigation that takes place at large. Money Laundering is not easy to identify as the criminals use different strategies to hide the real source of funds. Over the past few years, money laundering has been a severe issue. Both the financial institutions and the government are searching for combatting money laundering.

Anti-Money Laundering

AML laws require that financial institutions report any financial crime they detect to relevant regulators.

Anti- Money Laundering Investigation

The Anti-Money Laundering Investigation involves a lot of critical thinking when the AML investigator conducts the investigation to determine the transactional activities that are taking place. Anti-Money Laundering Investigation plays a major role in the AML process. Therefore, its very important to understand the process involved in conducting a constructive and through AML investigation.

While doing the AML investigation, one would also be able to understand the suspicious, illicit activities that are taking place.

Anti-Money Laundering Investigation Process

For doing any investigation, there is a process that one needs to follow. Following is the AML Investigation Process:

  • Trigger Event

The trigger event is generally regarded as the suspicious activity report (SAR) or a suspicious transaction that needs to be monitored. The trigger event brings t the eyes of the investigator while doing the investigation. SARs are generally more informative than alerts as they contain information about what the submitter has observed or their opinion.

  • Understanding the customer

It provides the overall understanding of the activities that needs to be assessed, evaluated and understood.

  • Understand the Activity

Under this step a holistic and high-level view of the activity for the relevant review period is undertaken to determine whether the activity in the accounts appears to be in line with your understanding of the customer their business or occupation.

  • Elimination of the Norms

In alignment with the previous steps, the activity in all of the accounts under review that clearly is commensurate with what would be expected (normal) by the customer is neither considered unusual or suspicious (from an ML, TF or sanctions perspective) and it is filtered out to enable the investigator to focus on the remaining activity.

  • Understanding the remaining activity to conclude if suspicious or not

AML Investigation list has considered the remaining activity. It also includes the trigger event, analysing it by incorporating it.

  • Report and consider Divesting

In the AML Investigation process this is the alst step. In this step one submits the SAR/STR, but to also consider divesting the relationship if the risk of maintaining is outside of an organization’s risk appetite.

Overview of Certified Anti-Money Laundering Professional Program

Riskpro Learning has launched a new certification program named Certified Anti-Money Laundering Professional (CAMP) for the compliance, AML professionals to meet the regulatory needs in the emerging market environment. Certified Anti-Money Laundering Professional regarded as one of the best international certifications in the AML domain. To gain the global recognition for the course, Riskpro Learning Academy has entered into the agreement to offer certification program to the global compliance officers.

The Certified Anti-Money Laundering Professional Program is a very unique certification program that offers a lot of benefits and flexibilities to the international community who are working in the AML, compliance domain. Certified Anti-Money Laundering is interesting experience for the compliance professionals.

The aim of launching this program is to provide the aspirants to know the one of the aspects i.e. AML Investigation by doing this program. The aspirants will understand the overall AML investigation process. Hence, it will also help to provide guidance in recognizing, investigating the suspicious activities that are taking place in the organization.

Additionally, it will also discuss instructions on implementing and maintaining an enterprise-wide compliance program.  In addition, it will give a road map in investigating, monitoring suspicious activities. As well as recognizing red flags that pose present and future challenges for regulated businesses.

KYC and EDD

By
Madhura Phadtare
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0
KYC and EDD

KYC and EDD plays a vital role in the AML domain. Know Your Customer is the due diligence and bank regulation which the financial institutions and other bodies shall perform to identify its potential clients. In the recent years Know Your Customer policy has came into existence as an important strategy to fight against money laundering. The financial Institutions inmost of the countries have to identify their clients. The main objective of this policy is to look after the originators of anti-economic crime that is taking place in the country. As well as keep a look on the audit trail of any money that flows in the banking system unknowingly.  However, a closer look at both the international and many of the national anti-money laundering strategies reveals that their regulatory instruments do not address both these purposes for combating money laundering.Therefore, KYC and EDD goes hand in hand.

Hence, for examination of customer risks, Know Your Customer is a critical component. “KYC” refers to the steps taken by financial institutions to:

  • Discover customer’s identity
  • Understand the activities of the customer
  • Perform a risk-based approach for monitoring the customer’s activities

Definition of KYC

Know Your Customer enables the banks to know their customers and their financial dealings to be able to serve them better. The term KYC can also reference the regulated bank practices that are similarly used to verify clients’ identities.  Banks and companies of all sizes have become big supporters of KYC. It is increasingly common for banking institutions, credit companies, and insurance agencies to require that their customers provide them with detailed information in order to ensure that they are not involved with corruption, bribery, or money laundering.

Importance of KYC in the Banks and Financial Institutions

The KYC procedure comes into existence when the bank customers open the account. The purpose of KYC is to reduce the risk of identity theft, money laundering, financial fraud, and the financing of criminal organizations. The importance of KYC in banks and other financial institutions have strong KYC procedures in place so they can ensure that their clients are not involved in money laundering or the financing of criminal organizations. 

Following are the elements for having an effective KYC in banks.

  • Customer Identification Program
  • Customer Due Diligence
  • Ongoing Monitoring

The importance of KYC is a complex undertaking that involves the collection of documents which show proof of identity (government issued IDs), establishing and verifying customer identity, and screening the identity information against political exposure, sanction lists, criminal lists, and unreliable customers lists.

Impact of KYC Compliance

KYC Know Your Customer regulations apply to financial service providers such as banks, payment companies. Know your client check, which is the first step of Anti-Money Laundering programs, also prevents the potential risks by verifying the customer identity. 

With the development of technology, crime techniques and risks also change. Financial institutions need to follow KYC regulations and Anti-Money Laundering laws to detect and prevent crime risks that organized crime organizations have developed using technology.

Enhanced Due Diligence

International definition of Enhanced Due Diligence is not provided. As a result, the financial institutions are at a very large risk. KYC and EDD are the 2 important concepts.  Enhanced Due Diligence means an advanced KYC due diligence process that provides further risk investigation. It highlights the risk that regular customer due diligence process will never reflect.

This is an ongoing process the existing customer has the potential transition into higher risk categories. High-risk entities are haunt by the financial sector. A major problem during EDD is understanding how much information about a customer is necessary.

Factors of Enhanced Due Diligence

Following are the EDD factors:

  • Customer Jurisdiction
  • Nature of Customer Business
  • Customer activity
  • Customer Transaction Value
  • Payment Methods

Enhanced Due Diligence in Banking Sector

The banking industry is very dynamic. Regulations and technologies in this sector are changing very fatly. EDD plays a vital role in the banking sector.  High-risk corporates such as banks need to control the Enhanced Client Due Diligence program carefully. These measures are preferred by banks to avoid penalties for money laundering. As well as to avoid penalties for non-compliance with regulations, and even to protect their reputation.

Overview of Certified Anti-Money Laundering Professional Program

Riskpro Learning has launched a new certification program named Certified Anti-Money Laundering Professional (CAMP) for the compliance, AML professionals to meet the regulatory needs in the emerging market environment. Certified Anti-Money Laundering Professional regarded as one of the best international certifications in the AML domain. To gain the global recognition for the course, Riskpro Learning Academy has entered into the agreement to offer certification program to the global compliance officers.

The Certified Anti-Money Laundering Professional Program is a very unique certification program. It offers a lot of benefits and flexibilities to the international community who are working in the AML, compliance domain. Certified Anti-Money Laundering is interesting experience for the compliance professionals.

The aim of launching this program is to put forth KYC and EDD aspects. This program covers the 2 aspects. KYC aspect will enhance the knowledge of KYC. Hence, KYC and EDD is the crucial aspect in CAMP program. The aspirants will also get to know the different types of KYC requirement. Enhanced Due Diligence is another aspect that is covered in this program. How EDD reviews are conducted is covered in this aspect.

Covid19 Initiative

By
Madhura Phadtare
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0
Covid19 Initiative

Covid19 Initiative must be taken in India at large. Globally, Covid 19 has produced an ambiguous environment for the citizens of every country. All over the world Covid19 Initiative shall take place. World Health Organisation called it as Pandemic. It has spread all over the world. Hence, this has created a mess in the life of common man.  Covid19 has produced an economic impact over the globe and in India.  Therefore, the world is witnessing a lot of dramatic interruption of everyday life.

Covid19 Situation in India

In India, the situation right now is beyond devastation. It’s necessary to take Covid19 Initiative in India. The second wave of this virus in India is an enormous tragedy. It’s also disastrous to the rest of the world. Additionally, a lot of people are struggling for getting a bed in the hospital. There is also a lot of shortage of oxygen supply, essential medicines etc. Our Covid19 Initiative will help thecitizens of India at large.

Overcome Covid19

Because of this a lot of people must lose their lives.  Hence, it is very crucial time for India. At this moment, we the citizens of India should come together and help the government in overcoming this pandemic situation. Although, the second wave in India had sudden spike in the cases. Thus,  Covid19 situation must overcome in India. Hence, India is witnessing a lot of horrifying cases day by day.

Riskpro Learning Covid19 Initiative

In this peak situation India shall come together. They shall help there near and dear ones who are suffering from the virus. It will as a whole benefit our country. Indiaforensic administers Riskpro Learning. Riskpro Learning has taken an initiative to help our AML & Financial crime fraternity whose near and dear ones are infected by the Covid 19 and need some help. Thus, to over come the dangerous Covid19 situation in India, Riskpro Learning has taken Covid19 Initiative to make the situation in India better.

Click here to know more

Certified Anti-Money Laundering Professional (CAMP) Syllabus Categories

By
Madhura Phadtare
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0
Certified Anti-Money Laundering Professional (CAMP)

Today, we’re diving into the CAMP Syllabus Categories. There are 7 categories under which the syllabus is divided including investigations, risk management, and more. Understanding these categories is important as the Learning Management System of Riskpro benchmarks the answers of preparation exams against these categories.

What is a Certified Anti-Money Laundering Professional (CAMP)?

The CAMP certification offered by Riskpro is a program that helps professionals become skilled in identifying and fighting against money laundering, making the financial world safer and more secure.

By obtaining the CAMP certification, individuals increase their professional credibility and show their dedication to maintaining high standards of honesty and compliance. This makes them valuable assets to organizations because they possess the necessary skills to prevent money laundering, terrorist financing, and other financial crimes.

The CAMP syllabus covers important topics such as understanding and following anti-money laundering laws, evaluating risks, conducting thorough investigations, reporting suspicious transactions, and implementing compliance frameworks. It ensures that professionals have a good understanding of the rules and regulations that govern financial systems, allowing them to effectively prevent illegal activities.

This certification is now available in classroom mode in five countries: Jordan, Morocco, Oman, Qatar, and Saudi Arabia. We have partnered with Regtechtimes Academy to launch the course in Middle Eastern countries.

CAMP Syllabus Categories

Don’t worry if these categories sound complex – I’m here to break them down in simple terms that anyone can understand.

🔒 AML Compliance

Ever wondered how financial institutions keep an eye on potential money laundering activities? AML (Anti-Money Laundering) compliance is the set of rules and processes that organizations follow to detect and prevent money laundering and other financial crimes. This category has the highest weightage in the syllabus. You will see a lot of questions in the CAMP Simulated Exams coming from this category alone. It’s like their shield against bad guys trying to use the financial system for illegal purposes.

🕵️‍♂️ Investigations

When suspicious transactions or activities are detected, investigations kick in. Experts dig deeper to uncover any hidden risks, fraudulent activities, or connections to criminal networks. It’s like being a detective, but instead of solving crimes with a magnifying glass, they use data, technology, and analytical skills. The investigation is one of the key distinguishing topics for Certified Anti-Money Laundering Professional (CAMP) holders.

💰 Trade Based Laundering

Now, let’s talk about a sneaky technique called trade-based money laundering. Bad actors use international trade transactions to disguise their illicit funds. They manipulate invoices, overvalue goods, or engage in other shady practices. But thanks to the watchful eyes of investigators, these tricks can be uncovered and prevented.

🚦 Risk Management

Remember the saying, “Better safe than sorry”? That’s what risk management is all about. Financial institutions assess and manage the risks they face, including potential money laundering, terrorist funding, and other financial crimes. By identifying these risks early on, they can put measures in place to stay one step ahead.

💼 Due Diligence

Before getting involved in any business deal, it’s crucial to do your homework. That’s where due diligence comes in. Financial institutions perform due diligence by carefully researching and verifying the background, reputation, and financial standing of their customers, partners, and suppliers. It’s like getting to know someone before trusting them with your hard-earned money.

📝 Reporting

If something suspicious is discovered during investigations or due diligence, it needs to be reported. Financial institutions have a duty to report any potential money laundering, terrorist financing, or other suspicious activities to the appropriate authorities. This helps maintain the integrity of the financial system and assists law enforcement agencies in their efforts to combat financial crimes.

🌍 International Regulatory Agencies

Financial crimes know no boundaries, which is why international cooperation is crucial. Regulatory agencies from different countries work together to establish standards, share information, and coordinate efforts to combat money laundering and other financial crimes on a global scale. It’s like a united front against the bad guys! This part of the syllabus has the second highest weightage. It covers topics such as FATF, the BASEL Accord, the US Patriot Act, and European Directives.

Riskpro Learning announces its first global certification

By
Madhura Phadtare
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0
Global certification forensic accounting

Pune, March 6, 2021 /Riskpro/ In the emerging economic scenario, forensic accounting is an essential tool for inquiry of financial crime and the facts found related to the financial crime. In the recent years, banks, insurance companies and police have increased taking help of the forensic accountants.

Forensic Accounting is now becoming the rapidly growing area for detection and prevention of financial fraud and investigation, Indiaforensic commences a Global Certification Program in Forensic Accounting. Hence, forensic accounting utilizes accounting, auditing, and investigative skills to conduct an examination into the finances of an individual or business.

Forensic accountants or auditors take a unique focus on performing their work. Forensic Accountants are discovering new and unique ways to identify, examine and also support the different types of investigative techniques. Therefore, the work performed by a forensic accountant would be interesting.

Global Certification in Forensic Accounting

Global Certification Program in Forensic Accounting commenced by Indiaforensic is a globally recognized certification. On registering, Global Certification Program in Forensic Accounting applicants will undergo E- learning.  The aspirants will be able to understand the  real life problem solving assignments. It is an international program and is focused on the developments related to forensic accounting, accessing the red flags of frauds etc.

Additionally, this program will also help the entry level staff who are willing to do there career in fraud detection, prevention, investigation etc.  In this program one will able to understand the overview of forensic accounting, different processes and roles of forensic accountants that take place, what are the different types of fraud, how the industry fraud works, basic understanding of forensic accounting, forensic accounting techniques developed with the help of financial statement frauds.

The one who will opt for this program will come away with the in-depth knowledge, understanding. Hence,  the different ways in which it will differ from the typical accounting role.

Forensic Accounting

“Forensic accounting is the application of financial skills and an investigative mentality to unresolved issues, conducted within the context of the rules of evidence. As a discipline, it encompasses financial expertise, fraud knowledge, and sound knowledge. As well as understanding of the business reality and working of business system.”

“The objective of commencing this program was to explore the world in forensic accounting. Additionally,  to increase in crimes, corruption and to create awareness among the people for the scope of forensic accounting” Joshi added.

The key function of forensic accounting is to explain the nature of financial crime to the courts. Since, it also entails the use of tracing funds, asset identification, due diligence etc.

Global Certification Program in Forensic Accounting is available globally. Applicants will be provided with the study material, Video learning and mock test. The E- learning content which we are going to provide you is of 30+ minutes. Therefore, we will also be providing a reference book.

About Indiaforensic

C.A Mayur Joshi founded Indiaforensic in 2005.  It is a Pune-based training and educational organization engaged in fraud examination, security, risk, management and forensic accounting in India. Riskpro Management Consulting Private Limited owns a brand named Indiaforensic since 2008. It started with 1 Certification and today catering 2 Flagship Professional Certifications, 3 Specialisations and 5 E-learning Certifications.  Therefore, Indiaforensic is the pioneer in the field of forensic accounting, well connected and networked with the industry.  Visit www.indiaforensic.com for more information.

What is the Salary of Forensic Auditor?

By
Madhura Phadtare
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0
salary

Decade ago, when we started Certified Forensic Accounting Certification, we faced this question very often. What salary can a forensic auditor draw ? or How much money can a certified forensic auditor make investigating frauds? Then, we had no clue. But as the days went by, the profession evolved.

In 2009, Our research was published in Hindustan Times. Additionally, in this research we first estimated the salaries of forensic accountants. It was a gross estimate of the salary in those days.

Now, Salary depends on the role of a professional in organisation. Roles vary somewhat based on the position and employer, but most of the forensic auditors use their forensic auditing and accounting expertise to help prevent, detect and prosecute the financial crimes.

The aspiring forensic auditors can choose this field as it is an exciting career option in the diversified cluster of industries and as well as the public sector agencies. Let us understand the package of forensic auditor’s salary.

What skills forensic auditors have ?

The forensic auditor often enjoys the varied responsibilities and duties assigned to him. He is generally detailed oriented and ethical. Depending on their position, employer and context, these professionals may gather as well as analyze the data, provide security consulting to the clients. The forensic auditor is mainly appointed to investigate in the fraud that has taken place as well as to find the evidence of proof of the investigation.

The job of forensic auditor is a very detailed oriented. The scope of forensic accounting and forensic audit is increasing day by day. The recent times have proposed opportunities for individuals to rise to power and cash their fortunes through multiple means.

The movement of these enormous sums against their services has been possible thanks to the advanced banking facilities. However, these transactions still pose a significant threat of tax fraud, embezzlement, and false claims over resources, and cyber-attacks.

The rising cause of concern has led to coming up with several safety measures that promise greater security for these processes.

People have introduced programs and software to fend off cyber attacks from hackers and ensure that a clear trail of the money gets presented at every step of the transaction. It enables the banks to avoid scams and to satisfy the clients regarding the protection of their assets.

Now days the business ecosystems are becoming complex due to the rising number of business investigations, frauds that are taking place in the business. The need for transparency and the accountability is crucial and the demand for forensic accounting is increasing day by day. So forensic accounting or auditing is looked as a career option as it is flourishing day by day.

Salary of forensic auditor is increasing

In last one decade, after our research on salaries, the salaries of Certified members are growing significantly. Today, some of our members draw eight figure salaries.However, that is not the trend, they are simply exceptional.

Now, every accounting firm in the country has forensic accounting departments. Within these sections, there may be sub-differentiation, for instance, some forensic accounting experts may specialize in insurance applications, personal injury declarations, and fraudulence, construction or royalty audits.

For starting your career as a Forensic Auditor you must first have a relevant experience of around 2-3 years so that he or she will have somewhat basic knowledge about the forensic audit domain.

The starting package for a forensic auditor offered with the relevant experience is Rs. 5 Lakhs per annum in India. Internationally, the country that provides a higher salary are mostly developed nations like the United States, Singapore, etc. Entry-level forensic accountants usually hold an accounting or criminal justice bachelor’s degree with a specialization in forensic accounting.

Some positions require professional certifications or master’s degrees, as well. Forensic accountants or auditors may be finance graduates and pursue forensic accounting credentials such as Certified Forensic Accounting Professional (CFAP). As the forensic accounting goes mainstream, the need for specialized forensic accountants Stock Market Fraud, Certified Anti Money Laundering Expert (CAME).

As the process in every organization is technology driven, almost every organization has its Risk Assurance Department. This department works hand in hand with the third party forensic auditors. In short, where there is a chance of accounting or auditing fraud there the forensic auditor comes in limelight.

Why CFAP is important?

The employers not only recognize experience but also qualification. Such qualification design to provide deep knowledge in accounting and investigation. All the candidates who hold CFAP also need to comply with the code of ethics. Code of Conduct is primary assurance of integrity of a CFAP. It helps in maintaining the quality of the work. By becoming a forensic auditor one will require a deep education in accounting and investigation skill higher than any auditor or accountant.

Conclusion

There is immense future in forensic accounting and auditing as a distinct “specialized area” consulting. The rising level of financial irregularities that are taking place, the requirement for forensic auditors is bound to significantly step up in the recent times. As well as there is a scarcity of qualified and experienced forensic auditing skill sets in India, it makes it a prized and valuable career option to pursue.

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