AML & KYC e-learning (India)

About this video

• Video Title: AML & KYC e-learning (India)
• Channel: XLPro E-Learning
• Speakers: Alicia (narrator)
• Duration: 00:09:45

Overview

This e-learning module provides an introduction to Anti-Money Laundering (AML) and Know Your Customer (KYC) concepts, specifically tailored for an Indian context. It explains the process, origins, and stages of money laundering, along with the importance and procedures of KYC. The module also covers customer risk categorization, enhanced due diligence for special categories, reporting requirements under the Prevention of Money Laundering Act (PMLA), and recent updates.

Key takeaways

• Money Laundering Explained: Money laundering is the process of disguising illegally obtained funds to appear legitimate, involving three stages: placement, layering, and integration.
• Stages of Money Laundering:
  • Placement: Introducing illicit money into the financial system.
  • Layering: Creating complex transactions to distance funds from their source.
  • Integration: Reintroducing laundered money into the economy in a seemingly legitimate form.
• KYC and AML Framework: The AML framework in India includes Know Your Customer (KYC) policies, customer risk categorization, ongoing due diligence, and reporting of suspicious transactions to FIU India.
• Customer Due Diligence (CDD): Emphasizes the importance of a clear customer acceptance policy, thorough identification procedures, and applying CDD at the Unique Customer Identification Code (UCIC) level to prevent anonymous or fictitious accounts and identify high-risk clients.
• Risk Management: Regulated entities must have a robust risk management system, creating customer risk profiles based on various parameters to handle real and perceived risks effectively.