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Training as a Key Element for Increasing Compliance Awareness

Financial Institutions´ program against money laundering and terrorism financing needs to include an ongoing employee training plan. This is part of the company's culture which is reflected in everything the financial institutions do from hiring new employees to planning strategic goals.

Training is one of the most important ways to emphasize the importance of AML/CFT efforts and to educate employees about what to do if they encounter possiblel money laundering. Training also acts as a crucial control measure in the mitigation of money laundering risks to which the financial institution may be exposed.

The starting point for applying an effective AML/CFT training program is to identify the target audience. According to AML directives and other AML related laws and regulations, all employees who are directly or indirectly involved in customer service processes should receive appropriate training. Therefore firstly, financial institutions must determine their AML/CFT training needs. Secondly, they must ensure that all their employees are well-trained according to their individual and role-based needs.

All employees should be trained on AML/CFT topics that are relevant to their activities and roles in the financial institution. For instance, employees that serve customers or assess risks should receive profound training that enables them to understand AML/CFT efforts, why the efforts are important and how they can be cautious against money laundering. However, employees who do not have any direct customer interaction may receive a lighter version of the training than those who are part of AML/CFT compliance staff or who are ensuring quality assurance. Role-based training is tailored to the employees´ specific activities and thus makes it one of the most efficient solutions to increase compliance awareness.

4 key elements that need to consider when creating the Financial Institution´s AML/CFT training plan

  • Frequency of the training: consider your employees direct or indirect involvement with customers. The direct involment role needs more in-dept training more often.

  • Role-based training for all employees: gather input from all levels of the organization and map roles and required levels of compliance knowledge for different employees

  • Ever-changing compliance environment: training needs are changing with the evolving society, thustraining plan needs to be adaptable and reflect the changes happening.

  • Compliance training is a continual process: it takes a constant effort to keep all employees up to their expected compliance knowledge standards, regular training is an essential tool for achieving that

At Complok, we help to increase overall compliance awareness by an online training program which is a great tool for both small and large companies. We are also producing tailor-made training programs as per specific financial institution´s AML/CFT needs.

Mari-Liis is a Financial Professional and Compliance Expert specializing in Financial Crime Prevention. She is a recognized expert in Anti Money Laundering (AML), Know Your Customer (KYC), Combating the Financing of Terrorism (CFT) and economic sanctions compliance.

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