Name three reasons why risk based approach is a good methodn Pro Tip: The below key points is an extraction of recently examined core concepts in CAMS examination. We highlighted below key points to encourage candidate to pay special attention to it. Please note, the below key study note do not cover all concepts and materials, you are always encouraged to study the official ACAMS study material and leverage our practice questions to study.
Flexible, fits all jurisdictions, customers, products and delivery channels
Effective
Proportionate, not check in a box style
what are the risk associated with a FIGeographical regions
Customer types
Products and services offered
What are the two risks that should be included in risk-based analysisInherent risk and residual risks
Determine the degree of training for senior management and the board compare to frontlineThe degree is different and they do not need the same compare to first second of third lines of defense.
They should be focused on importance of AML CFT regulatory requirements, penalities for noncompliance and personal liability
What to be focused on AML CFT trainingGeneral background and history pertaining to ML control, the basic idea of why criminal do it
Legal framework on what AML CFT laws apply
Penalities for AML CFT violations
Internal policies, such as customer identification and verification procedures
Review of the internal AML CFT and sanctions risk
Legal record keeping
Reaction on suspicious client
Duties of employee
Identification of customer using a reliable independent source
Identify the BO and taking reasonable measures
Understand and obtain the purpose and intended nature of the business relationship
Conducting ongoing due diligence
Non face to face account openingn Can be conducted if the national law allows.nBut need to take into account the specific risks associated with this method.n Which two organization impose sanctions?United Nations and European Union