This is a paper that focuses on the money laundering risk base approach and its key components. The paper also focuses on other aspects that are relating to the topic question.
The money laundering risk base approach and its key components
All parts of the question can be answered in relation to a jurisdiction with which you are familiar.
The name of the jurisdiction you have selected should be clearly stated in your answer.
Answer all parts of the question.
a) Firstly, explain what is meant by a risk-based approach (RBA) to money laundering. What are the key components of an RBA?
b) Secondly, explain how a knowledge of the work and initiatives created by the Financial Action Task Force (FATF) is of value to professionals working in the anti money laundering sphere.
c) Thirdly, terrorist organisations require financial support in order to achieve their aims, just like any other criminal organisation. A successful terrorist group is, therefore, one that is able to build and maintain an effective financial infrastructure.
Explain the main ways in which terrorist organisations raise funds.
d) Fourthly, what is sanctions screening and what are its purposes?
e) Also, what are the key skills, knowledge and characteristics needed by a professional working in the AML arena today? Explain why each of these features is important.
f) Additionally, in the context of Customer Due Diligence evaluate the status of politically exposed persons (PEPs) and explain the issues around ‘immediate family members’ and ‘close associates’ of PEPs.
ICA regards plagiarism and other forms of academic malpractice, such as collusion and fabrication, as serious academic offences.
10. When submitting your assignment to ICA you have responsibility for ensuring that:
a. it is entirely your own work, except where you have given fully documented references to the work of others
11. All assignments to go through Turnitin detection software that checks for passages found elsewhere on the Internet, in books and journals or in work previously submitted.
12. ICA has guidelines on academic malpractice to help clarify for you what will be as constituting such offences and to indicate the nature of the penalties that may be imposed where they occur.