Article (21) of the Cabinet Decision No. (10) of 2019 on the implementing the Anti-Money Laundering and Combating the Financial for Terrorism (AML-CFT) Law requires the AML compliance officer to conduct ongoing training programs for his employees.
Training programs must equip the employees with the appropriate skills and knowledge to help companies prevent money laundering and financial terrorism at the initial stages. Financial institutions are more exposed to financial terrorism accessed through the company's employees.
This blog will help you understand why you need an effective AML training program in place for your employees.
Importance of the AML Training Program
- It helps frame the policies, procedures, and enforcement of internal control systems relevant to the organizations that help prevent financial terror attacks and potential money laundering.
- It facilitates your employees’ knowledge of how international and local financial compliance works.
- It caters to your employees to develop skills and useful methods to identify money laundering and financial terrorism risk areas.
- It helps identify roles and responsibilities accurately for every employee in the department.
AML Training Program: Suitability and Frequency
Although the training program should cover each employee of the organization to be well-versed with the law and its requirements, the law specifies its suitability and frequency as follows:
Which Employees is the AML Training Program for?
The structure of the AML Training Program is commonly for middle-to-senior level employees. Although the company needs to keep in mind the level of risk exposure of the company to money laundering and finance terrorism, existing employees need to be nourished with refresher training regularly.
Special purpose training is required to give an overview to the employees regarding newly introduced regulations in the country or newly introduced internal control policies in the company.
Frequency of the AML Training Program
Whether an employee is hired permanently or temporarily, training must be given to every suitable employee whenever required. The company can provide training to the new employees as soon as possible after the joining.
The refresher training program must be scheduled depending on the ongoing financial risk exposure of the company.
The frequency of updates in international laws relating to financial terrorism, contracts, cooperation between the intergovernmental bodies, changes in local money laundering cases, and financial terrorism laws influence the special purpose training.
If a company's products or services fall under an industry that is highly exposed to financial risks, it needs to train its employees more frequently.
Key Considerations of the AML Training Program
The training program will ensure that the employees are well-equipped with the essential skills and knowledge through the partnership between Abu Dhabi Global Market (ADGM) and Certified Anti-Money Laundering Specialist (ACAMS).
You should cover the following aspects during the program:
- Rules and regulations regarding financial risk exposure,
- Explanation to the international cooperation to fight Money Laundering and its importance,
- Understanding of the provisions, law and significant case studies to prevent money laundering in the country,
- Obligations relating to repayment and bad debts of international and local banks to detect suspicious transactions,
- UAE Central Bank Law
Final Thoughts
To strengthen the country's position as regional banking, trade, and investment worldwide, a national combat initiative of training the companies’ employees can help them from being exposed to money launders and financial terrorists.
Become an AML Compliant Organization
At Flyingcolourtax, you can get the right consultations for all your AML-CFT requirements. Our qualified professionals can help you prepare and implement a robust AML compliance framework.
We can also assist you in accounting, taxation, financial modeling, company registration, and PRO requirements.
Register your free consultationwith us to know more about the comprehensive services.
To learn more about What is AML Training Program, and Why Do You Need to Train Your Employees?, book a free consultation with one of the Flyingcolour team advisors.
Disclaimer: The information provided in this blog is based on our understanding of current tax laws and regulations. It is intended for general informational purposes only and does not constitute professional tax advice, consultation, or representation. The author and publisher are not responsible for any errors or omissions, or for any actions taken based on the information contained in this blog.