What is Money Laundering?

Money laundering can be described as the process by which the proceeds of crime are disguised to make them appear legitimate. As such, money laundering is an essential part of illegal activity, and helping stop it can have a real-world impact on crime.

How much money is laundered each year?

It’s estimated that 2.7% of global GDP (over 2 trillion USD) is laundered per year. (FACTI2020)

What is the Money Laundering Cycle?

Money laundering is traditionally described in terms of ‘The Money Laundering Cycle’. You may already be familiar with the conventional money laundering cycle which usually divides the money laundering process into three principal phases.

• Placement

• Layering

• Integration

What are my AML obligations?

Different jurisdictions have varying regulatory obligations for what your AML obligations look like. However, most jurisdictions require individuals to complete mandatory refresher training once every year or every other year.

In Jersey, the Jersey Financial Services Commission (JFSC) publish the AML/CFT/CPF Handbook, which outlines the legislative and regulatory requirements for the prevention and detection of money laundering and the financing of terrorism. You can click here to view the Handbook.

In Guernsey, the GFSC also maintains the Handbook on Countering Financing Crime (AML/CFT/CPF) which is applicable to all financial services businesses and prescribed businesses can be found here.

At the end of the AML/CFT/CPF course, users will have:

• A detailed understanding of what money laundering is

• An understanding of jurisdiction-specific legislation

• An understanding of how to identify suspicious activity

• An understanding of the risk-based approach (RBA)

• An awareness of your CDD and KYC obligations

• An understanding of your reporting obligations

• An understanding of terrorism financing

• An understanding of Countering Proliferation Financing (CPF)

What are AML/CFT/CPF measures?

AML/CFT/CPF frameworks have a layered-style structure, in which international initiatives shape local laws and guidance, which ultimately shapes your company’s policies and procedures. It’s very useful to have an understanding of the different AML/CFT/CPF frameworks when discussing appropriate AML/CFT/CPF measures.

• International Initiatives

• Sanctions

• Primary Legislation

• Secondary Legislation

• Regulatory Powers

• Guidance

• Codes of Practice

• Internal Policies and Procedures

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