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Money Laundering and Terrorism Financing through

Precious Metal dealers and Jewellery businesses

Background

Anti-Money Laundering (AML) legislation has been around for a number of years. AML legislation was expanded to include Counter-Terrorism Financing with the introduction of the US Patriot Act in 2001, as a response to the September 11 terrorist attacks. Since then, Governments around the world have been introducing new laws focused on detecting and reducing money laundering and terrorism financing.

Among other compliance requirements, these institutions must develop and implement AML training. E-learning is the methodology of choice for such training. Not only is e-learning cost-effective and rapidly scalable, it provides an audit trail of an institution’s compliance with the training requirements of the applicable AML regulations.

Purpose

The purpose of this course is to provide individuals with an understanding of the Anti-Money Laundering and Counter-Terrorism Financing laws, to ensure staff that understand the money laundering and terrorism financing risks that their business might reasonably face and how to mitigate against these risks.

Target Audience

This course is designed to be used by anyone that works in the precious metal or jewellery sector who would like to develop an understanding of the basics of anti-money laundering and counter-terrorism financing and the risks that they might face when conducting business. The course is available for AUD$99 (or less for bulk purchases).

Course Overview

After completing this course you will be able to: Define money laundering and counter terrorism financing Explain the principal stages in money laundering - placement, layering and integration Explain the techniques for money laundering at each stage Explain the background to the development of anti-money laundering legislation around

the world Explain the key money laundering and terrorism financing risk components Describe the main elements of any anti-money laundering program - customer

identification, employment screening, training and transaction monitoring and suspicious matter reporting

Describe the benefits of compliance and the potential consequences of non-compliance Recognise the red flags that could indicate unusual or suspicious behaviour Recognise the principal techniques used by money launderers Describe the key processes and technologies to fight money laundering Pass the learning assessment

Detailed Course Overview Module 1: Overview of Anti-Money Laundering and Counter-Terrorism Financing

Learning objectives What is Money Laundering and Terrorism Financing? What is the size of the Money Laundering and Terrorism Financing problem? The principal stages in money laundering - placement, layering and integration The techniques for money laundering at each stage A brief history of AML/CTF legislation Overview of AML/CTF legislation in Australia Two-phased approach to AML/CTF in Australia Chronology of major advances in AML/CTF legislation Examples of Money Laundering and Terrorism Financing reported in the media Why do criminals launder money? What are the consequences of money laundering Money laundering techniques Module 2: Placement techniques

Which common placement techniques are used for money laundering? o Smurfing of cash deposits and structuring o Wire transfers o Alternative remittances o Asset conversion o Bulk movement o Gambling

Module 3: Layering techniques

Which common layering techniques are used for money laundering? o Electronic funds transfers o Offshore banks o Shell corporations o Trusts o Third party intermediaries

Module 4: Integration techniques

Which common integration techniques are used for money laundering? o Credit, debit and pre-paid cards o Buying and selling assets o Transfer pricing o Combining legal and illicit cash flows (and - audio not on screen text o Import and export businesses

Module 5: Summary of the AML/CTF Act 2006 Overview of the AML/CTF Act 2006 What constitutes a ‘designated service’ under the AML/CTF Act?  

Module 6: Money laundering through precious metal dealers and jewellery businesses

What characteristics of precious metal and precious stone ‘dealers’ are attractive to criminals?

ML/TF Risk Assessment for the precious metals and jewellery dealers sector o What ‘products and services’ risk factors should be considered by precious metal

dealers and jewellers? o What ‘channel’ risk factors should be considered by precious metal dealers and

jewellers? o What ‘customer and counterparty’ risk factors should be considered by precious metal

dealers and jewellers? o What are the characteristics of higher risk counterparties? o What ‘country and geographic’ risk factors should be considered by precious metal

dealers and jewellers? o What other risk factors should be considered by precious metal dealers and jewellers?

What is the Kimberley Process and which countries are party to it? What controls currently exist to regulate precious metal dealers and jewellers? Red flags associated with money laundering in the precious metal and jewellery sector

Module 7: Money laundering through precious metal dealers and jewellery businesses

Retail gold purchases as a direct method of money laundering Private platinum purchases used to facilitate money laundering Silver refining company used as a cover for money laundering Terrorists using gold to move value La Mina – the biggest money laundering case through precious metals in history

Module 8: Benefits of compliance and potential consequences of non-compliance

What are the benefits of compliance? What are the potential consequences of non-compliance?

o Financial and civil penalties o Enforceable Undertakings and Remedial Directions o Appointment of external auditor to audit AML/CTF Program o Reputational damage o Closure of non-compliant businesses.

At the end of the course there is a learning assessment to track the knowledge of the participant, which generates a certificate of completion once the user attains the required pass mark. The scoring and pass marks are fully auditable and can be provided to regulators to evidence that training has been conducted.