KSY132: Building Resilient Capital Markets and Financial Institutions: AML, CFT, CPF and Anti-Corruption Best Practices

Learning Outcomes

1. Define key concepts, terminology, and typologies related to AML, CFT, CPF, and anti-corruption in the financial sector.

2. Apply a risk-based approach to identify and assess money laundering, terrorism financing, proliferation financing, and corruption risks.

3. Analyse real-world case studies to identify control weaknesses, red flags, and compliance failures in AML, CFT, CPF, and anti-corruption programmes.

4. Evaluate the effectiveness of existing AML, CFT, CPF, and anti-corruption controls within their institutions against regulatory expectations and best practices.

5. Develop practical action plans to enhance institutional resilience through improved policies, controls, monitoring mechanisms, and staff awareness programmes.

Course Contents

• Foundations of Financial Integrity and Regulatory Expectations

• Concept of financial integrity and institutional resilience • Overview of financial crime threats: o Money laundering o Terrorism financing o Proliferation financing o Corruption and bribery • Key international standards and frameworks • Roles and responsibilities of financial institutions in protecting the financial system • Case study: Impact of financial crime on institutions and markets

• AML Best Practices and Risk-Based Controls

• Core AML principles and control pillars • Risk-based approach (RBA): o Customer risk o Product and service risk o Geographic risk o Transaction risk • Effective CDD, EDD, and ongoing monitoring • Suspicious transaction indicators and reporting obligations • Leveraging technology and data analytics in AML compliance • Case Study: Identifying ML red flags

• Countering Terrorism Financing (CFT) and Proliferation Financing (CPF)

• Understanding CFT and CPF risks and typologies • Sanctions regimes, targeted financial sanctions, and screening expectations • CPF risks linked to trade finance and dual-use goods • Challenges in detecting low-value, high-impact transactions • Coordination between compliance, operations, and front-line staff • Case studies: CFT and CPF failures and lessons learned

• Anti-Corruption and Ethical Governance

• Forms of corruption and bribery affecting financial institutions • Anti-corruption policies, controls, and reporting mechanisms • Managing conflicts of interest and third-party risks • Ethical leadership and tone from the top • Integration of anti-corruption with AML, CFT, and CPF frameworks • Discussion: Ethical dilemmas and decision-making scenarios

• Building Robust Compliance Programmes and Institutional Resilience

• Designing and strengthening integrated AML, CFT, CPF, and anti-corruption programmes • Governance structures, internal controls, and independent assurance • Monitoring, testing, and continuous improvement • Staff training, awareness, and accountability • Developing practical improvement action plans