Basic AML questions for legal service providers

To raise the qualifications of legal service providers at all levels by educating and introducing them to the theoretical, legal, practical and organizational aspects, requirements of legal norms, problems and examples of good practice related to AML/CFT. As well as providing information on amendments in the field of AML/CFT, their impact on the future operation and development in this sector.

Prospective and existing employees of all levels of providers of legal, audit and accounting services (as outsourcing services), whose duties include compliance with the requirements of AML/CFT and consulting on it (including work with clients).

• At the basic level, understand and learn to apply the requirements of various Latvian and international regulatory acts in the field of AML/CFT;
• Analyze information on publicly available sanction registers.

Knowledge of the day-to-day work of legal service providers (legal, financial or accounting) is desirable.

Training materials prepared by BDA.

Not intended.

Introduction

• Historical aspects of different types of AML, their importance and statistics;
• Basic principles and elements of AML prevention and combating (track money, use of money, PEP, law enforcement authorities, etc.).

AML institutional system in the world and in Latvia

• G-7, FATF, UN, Council of Europe, European Union and their contribution;
• Latvia – policy makers, Consultative Council, FSAP, supervisory and control institutions, FID, law enforcement institutions, etc. 

The diversity of the subjects of the AML/CFT Law and certain aspects of their (sa) operation 

• Diversity of subjects of the law and its purpose; 
• Relationship between AML requirements, personal data protection and professional activity protection requirements; 
• JPS AML framework and reporting of suspicious and other transactions;
• Diversity of JPS and its staff’s reporting obligation; 
• Diversity of JPS and supervisor relationships.

Basic concepts, definitions, understanding

• Explanation of the terms “action”, “transaction”, “attempt”, “funds/property”, “illegal”, “criminal”;
• AML/CFT, liability, terrorist funds;
• Terrorism, its financing, responsibility;
• Proliferation, its financing, responsibility;
• Sanctions, lists of sanctions, their verification.

FATF 

• 40 recommendations;
• “Grey” and “Black” list;
• FATF requirements for clients from high-risk countries.

Customer identification requirements

• Regulatory requirements (on-site, off-site identification), risks;
• Copies of various types of documents, their storage and the main risks;
• Identification problems, forgery of documents.

Customer research

• Regulatory requirements (research, in-depth research);
• Detection of suspicious transactions;
• Investigation of suspicious transactions.

Types of cooperation with the client and their risks

•  Various aspects of contract draft preparation;
• Providing opinions (scope, regulatory requirements, actual execution, consequences);
• (Non) disclosure of various types of information, including to the client (volume, stages).

Evaluation of (public) negative information about the customer

• Normative acts and other requirements;
• Possible risks and liability;
• Compliance with the causal relationship; 
• JPS “risk appetite”. 

Reporting of suspicious and other transactions

• Definition, characteristics, main features of a suspicious transaction;
• Threshold transactions;
• Termination of cooperation with the client.

PEP/PNP

• Introduction (corruption, risks);
• Some typologies of corruption;
• Evaluation of situations, preservation of results.

NIL freezing

• Freezing definition, process, cases, exceptions;
• Appeal of FID orders;
• The scope and boundaries of the money movement investigation.

Sanction lists

• Types of sanctions, national division of competence; 
• Review of normative acts;
• Exceptions.