AML Training for Employees: Key Objectives & Requirements in 2022

Developing a robust AML training programme for employees is a critical requirement for Financial institutions (FIs) and Designated Non-finance Businesses & Professions (DNFBPs) such as Dealers of Precious Metals and Stones, Real Estate Agents, Auditors and Trust & Corporate Service Providers. Training the staff on Anti-Money Laundering and Combating the Financing of Terrorism (AML-CFT) is also a mandatory requirement as per Article 21 of the Cabinet Decision No (10) of 2019.

Not proving AML training to employees will be deemed as a compliance failure that may attract heft penalties. However, many businesses are not aware of the significance of AML training programs in the UAE. This blog attempts to equip you with key insights on the AML training program in 2022:

What is AML Training Program for Employees?

As per Article 21 of the Cabinet Decision No (10) of 2019, it’s the duty of an AML Compliance Officer to prepare, execute and document the ongoing AML training programs for the company’s employees. FIs and DNFBPs must impart AML training to their staff to ensure that their employees have a greater understanding of the ML/FT risks that their organisation is exposed to. Consult with AML consultants in Dubai, UAE for more information on AML training programmes.

Key objectives of an AML Training Program in the UAE

FIs and DNFBPs under AML obligation must obtain the key objectives of the AML training program, They are:

  • To make the employees aware of Money Laundering / Terrorism Financing methods and typologies that are relevant to the organisation
  • To help the employees understand AML policies, procedures systems & controls put in place by the organisation
  • To help the staff members acquire the skill to identify suspicious activities & unusual behaviour of customers and report them to the AML compliance officer/ Money Laundering Reporting Officer (MLRO)
  • To make the employees understand the responsibilities and role of each individual in the organisation towards countering money laundering and financing of terrorism

Major things to be included in your AML Training Program

Creating an effective AML training program in the UAE is a tough task for both FIs and DNFBPs. However, they can consult with the top AML consultants in Dubai to understand what should their AML training program cover. You have to include the following key focus areas in your company’s AML staff training program in the UAE:

  • The organisation’s obligations as per the UAE AML-CFT Law
  • The consequence of not complying with the AML-CFT Law in the UAE
  • Major ML-FT risks to which the company is vulnerable and the consequences of such risks
  • Steps to be taken to meet the AML obligations as well as identify, manage, and counter ML-FT risks
  • Penalties to incur for failing to comply with the AML laws
  • How should the employees respond when they detect any suspicious transaction or client
  • Key accountabilities and responsibilities of the employees
  • Case studies based on true circumstances may include how the threat was detected and how it was dealt with proper strategies.
  • Providing details regarding the activities and areas within a company that may be highly prone to money laundering and financial terrorism risks

Target Employees under the Training’s Scope

The leaders of the organisation must ensure that all the relevant employees of the company have received AML training. Employees must be provided with AML training irrespective of whether employed on a permanent or temporary basis. The AML compliance officer should also train all the new employees as well at a reasonably convenient time. You can seek the advice of AML advisers in Dubai before conducting the first AML training program within your organisation. However, you should not forget to ensure that the following types of employees received AML training:

  • Customer-facing staff
  • AML-CFT compliance staff
  • Senior management and the board of directors

Why is AML Training Critical for Organisations?

Training the employees to create awareness of money laundering typologies has long been considered a key part of AML-CFT controls. This is because employees are a company’s best defence against money launderers and those who finance terrorist groups. Individuals and criminal groups always try to abuse the services offered by companies and use them for illegal purposes. If the employees of an organisation are not trained on AML, it would be easier for criminal groups to launder the proceeds of their crimes into the financial system.

Frequency of Providing AML Training in the UAE

The Financial Action Task Force (FATF) recommends that the financial institutions and DNFBPs (auditors, trust & corporate service providers, dealers of precious metals & precious stones, and real estate agents) should conduct AML training within their organisations on an ongoing basis. Avail of AML consulting services in Dubai to understand the frequency of conducting AML training programmes within your organisation.

Design your AML Training Programmes with Jitendra Chartered Accountants

Organisations in the UAE should ensure that their employees have sufficient awareness and knowledge about ML/FT risks. AML compliance officers should determine how to conduct these training sessions and how often they should hold AML training within their company. Conducting AML training in the UAE is a compliance requirement, and failing to do so will incur hefty penalties. If you are confused about how to conduct AML training for employees, seek the help of AML consultants in Dubai, such as Jitendra Chartered Accountants (JCA).

JCA is a leading consultancy that offers AML training services in Dubai for a wide range of companies. Our clients include both financial institutions and DNFBPs, and our experience will add value to your AML compliance programme. Apart from helping with training, we can also assess the robustness of your current AML/CFT programmes and suggest improvements. If your organisation have been subject to any penalties by the Authority, we can help you rectify that situation by offering AML penalty appeal services in Dubai, UAE. Let’s work together to fight off the threat of money laundering for a better future.