Course dates
Course overview
Fraud and money laundering have never been more prevalent or caused more chaos than they do today. The serious risks of fraud, corruption, money laundering and related compliance issues continue to be the main areas of concern for regulators and institutions around the world. Fraud and various irregularities cause major losses for banks and other organisations. In addition, non-compliance with anti-money laundering (AML)/antibribery legislation can result in imprisonment, for the relevant employees and managers concerned, however unwittingly.
'Fraud, Corruption and Money Laundering: Prevention, Detection and Recovery'
is designed for those who either need a comprehensive introduction to, the latest financial crime prevention and anti-money laundering techniques.
Summary of course content
- Understanding global best practice in the prevention of fraud, corruption and money laundering
- Reviewing latest legislation and case law
- Examples of successful fraud prevention, detection and recovery
- Learning the requirements of the Financial Services Authority and other regulators
- Understanding the implications of the EU's Third Money Laundering Directive
- Reviewing the expectations of law enforcement agencies
- Implementing crucial internal controls, systems and documentation
- Preventing and detecting market abuse and anti-competitive practices
Methodology
The course will be based around class exercises and case studies with many real-life examples. It is an intensive and interactive course that will provide delegates with a comprehensive understanding of the latest techniques and a guide to future trends.
Who should attend this training course?
- Compliance managers and staff
- Banking and financial services sector executives
- Money laundering reporting officers
- Internal auditors
- Fraud prevention managers and staff
- Fraud investigators
Supporting publication:
Day 1
Current global AML legislation - key features and differences
- US vs. Europe
- UK/Europe - the move to risk based AML procedures; the expanded regulated sector
- China, HK, Singapore, Indonesia - comparative features across these jurisdictions (similarities and key
differences)
- Why is there a different approach in Europe compared to USA - what are the implications?
The reasons for the major AML legislative changes in recent periods
- Risk based assessments
- The expanded regulated sector in Europe and its consequences
- US resistance to the expanded regulated sector
- Cost effectiveness analysis
- Comparative trends shown by FATF and other bodies
The links between fraud, corruption and money laundering
- Types of money laundering
- Current trends in fraud
- The interaction between fraud and money laundering
- Are there similar trends in fraud and money laundering?
- The key controls to combat corruption
- Who should be responsible for anti-money laundering and anti-fraud compliance within an organisation?
Key fraud theories
- The key fraud theories developed in the last 20 years
- What are the common characteristics of a fraudster?
- Who is the most likely to commit fraud?
- What are the attributes of a bank which might predispose it to being defrauded (or being used as the instrument of fraud)?
- How are frauds detected?
- How is corruption prevented?
Key current issues in AML procedures (identity)
- Customer and client due diligence
- the traditional approach
- the risk-based approach
- High risk situations – enhanced due diligence
- Transparency international and the corruption index
- Politically exposed persons
- Beneficial ownership - how this can be hidden?
- Charities and trusts
- Combatting sophisticated money laundering techniques
Cases and examples
Key current issues in AML procedures (transactions)
- Transaction monitoring software
- Determining the suspicious transaction or pattern of activity
- Managing false positives
- Understanding the limits of alert generation
Day 2
Corporate issues in fraud
- Setting the company's anti-fraud culture
- Communicating the company's anti-fraud policies
- Developing a fraud awareness programme for your organisation
- Responsibilities for managing fraud
- Division of anti-fraud responsibilities between departments e.g. role of internal audit, external auditors,
compliance, human resources, the Board of Directors etc.
- Inter-relationship with your money laundering internal controls, responsibilities and reporting duties
- Particular problems for banks e.g. confidentiality, reporting issue, employee protection
Current issues in fraud
Case studies: plastic card fraud
Case studies: identity theft
- Electronic fraud - phishing, freakers, crackers and other IT intrusion techniques
- Employee frauds
- Detecting Ponzi schemes
Case studies: advanced fee frauds / Ponzi schemes
Case studies: high risk sectors within banking - trading operations (Société Générale, Barings and others)
Case studies: asset backed lending – mortgages (sub-prime loans, valuation rings); factoring (cross firing frauds), leasing (multiple pledging)
- Other frauds - supplier / third party fraud; payroll frauds; false invoicing schemes
Fraud and corruption prevention: techniques and controls
- Risk assessment reviews - by function and by product
- Internal audit procedures
- Identity theft controls and confirmation techniques
- Employees - whistle blowing systems, job rotation and compensating checks
- Prevention during times of changes - acquisitions, new products, etc.
- Fraud prevention policies
Case studies
Employee fraud
- Preventing fraudsters becoming a part of your organisation: how to identify and screen them out
- Effective profiling techniques
- Vetting new staff
- Monitoring
- Employment law issues in vetting, monitoring, investigating, disciplining and dismissing
- Staff training and staff appraisals
- Key systems and controls
- Expense claims - how to avoid irregularities?
- False accounting
- Senior management fraud
- Market abuse and insider dealing / trading - measures to detect and prevent
- Anti-competitive practices
- The compliance requirements and the methods and techniques you need to ensure your organisation complies
- Other related compliance requirements (e.g. legislative and best practice responses to cartels and price-fixing)
- What you need to be aware of and what to watch out for?
Return on your investment in anti-fraud and AML
- Relationship between internal audit, compliance, corporate governance, fraud loss recovery (principles, methods and departments); independence, accountability and synergy
- How to measure ROI in these areas and how to improve your cost effectiveness and profitability
- What levels of ROI are your competitors and peers achieving in these areas?
Fraud detection and investigation
- Fraud detection software and neural fraud detection techniques
- Mystery shopping
- Fraud response plans - what to do if you detect fraud?
Case study: how do you handle a suspected employee fraud?
- Forensic investigation software
Case study: the fraud triangle and other aspects of fraud psychology
- Relational software - i2 - how to find relationships between suspected fraudsters?
Case study: interviewing the suspect - what to do and not do?
Setting up a fraud response plan
- Why do we need a fraud response plan?
- How can it help us?
- Key features of the plan
- Obtaining approval and gaining awareness throughout the bank
- How the plan operates in practice?
Class discussion: provision of specimen fraud policy and fraud prevention
Checklists documentation
Day 3
AML reporting
- The regulatory requirements UK/Europe, USA, China, HK and other countries
- The Consent Regime in the UK compared to other jurisdictions (US, South-East Asia)
- Key controls to have in place
- Internal documentation, training and support
Case studies
Tipping-off and consent
- Variations in the legal requirements UK/Europe, USA, China, HK, Singapore
- A review of recent legal decisions relating to consent and tipping-off
The role of the MLRO
- The MLRO's special role
- The significance of Privilege
- The Objective Test
- Benchmark guidance on best practice
- AML Manuals
- The MLRO's annual report
- Dealing with the regulator / law enforcement agencies
Record keeping and evidence
- What evidence must be retained and for how long?
- Examples of legal cases regarding retention of evidence
The central role of training
- Its role in AML legislation
- Employment contracts
- Employee reviews
- Whistle blowing revisited
Special considerations on AML
- Constructive trusts
- Civil risks of non-compliance
- Equivalence
- Extending the regulated sector
- Banking secrecy and data protection
- The role of external auditors
- What to do if you suspect a regulatory breach?
Day 4
Fraud recovery
Distinction between criminal fraud cases and civil fraud cases
- Key differences
- Your role in relation to a criminal fraud case
Investigation principles and planning
- Vital rules and techniques to ensure success
- Intelligence vs. evidence
- Key aspects of evidence
- Protection of evidence
- Forensic data recovery; data investigation methods and latest techniques of electronic evidence
- E-discovery
Quantum of loss
- What can you claim for?
- How do you claim?
- What factors enable you to obtain the best financial result?
- How to avoid costly risks and pitfalls?
- Key elements for successful recovery
Cross-border recoveries
- Search and seize orders and injunctions
- Other principal techniques and methods
- Recovering assets in various jurisdictions
- Mutual legal assistance treaties
- Overcoming jurisdictional obstacles
- Covert investigations
- Ensuring cost effectiveness
Case studies and class exercises throughout the day
Summary and close
InterContinental Grand Stanford Hotel, Hong Kong, Hong Kong
This programme takes place on a non-residential basis at the InterContinental Grand Stanford Hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.
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Monica Bond
Monica Bond is a world renowned expert on anti-money laundering and anti-fraud procedures. She is the author of the original Accountants Digest publication on money laundering, published by the Institute of Chartered Accountants in England and Wales.
For more than twenty years she has specialized in fraud investigations and recoveries and has lectured throughout the world on anti-money laundering policies and procedures. She was Head of Forensic Services, West Region, for KPMG, and Forensic Services Partner with Grant Thornton. For the last ten years she has been managing director of a specialist investigative accountancy firm.
Monica's professional qualifications include Solicitor of the Supreme Court, Certified Fraud Examiner and Member of the Academy of Experts.
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
Course dates