Know Your Customer (and AML)



£ 2001-3000


  • Type


  • Methodology


  • Class hours


  • Duration

    3 Days

  • Start date

    Different dates available

With the focus very much on anti money laundering and anti terrorism, all banks are required to comply with internationally established “Know Your Customer” guidelines. The BIS stipulates “banks must have adequate controls and procedures in place so that they know the customers with whom they are dealing.

Adequate due diligence on new and existing customers is a key part of these controls. Without this due diligence, banks can become subject to reputational, operational, legal and concentration risks, which can result in significant financial cost”.

The purpose of the course is to ensure delegates have a full understanding of KYC, its importance, its implementation and its management. The methodology includes class room styled lectures plus practical exercises.

This course is ideal for Money Laundering Reporting Officers (MLRO) and their deputies, Central Bank and regulators’ staff, internal auditors, compliance specialists, Risk Managers, Financial Crime Managers and Nominated Officers (NO).

This course can be delivered in-house to a team of people.

For further information about the course, trainer or to request a quote, please contact the center.



Start date


Start date

Different dates availableEnrolment now open

Questions & Answers

Add your question

Our advisors and other users will be able to reply to you

Who would you like to address this question to?

Fill in your details to get a reply

We will only publish your name and question



  • Know Your Customer
  • Anti-money Laundering
  • Global "black" economy
  • Global Response
  • World Bank
  • OECD
  • Risk Matrix
  • Due Diligence
  • Sanctions
  • US Patriot Act

Teachers and trainers (1)

Former  Practitioner

Former Practitioner

Contact us for details

Course programme

Course Content:

The Scale of the Problem:

  • Global “black economy”
  • Is it victimless?
  • Lessons from recent scandals, including Worldcom, Parmalat, Enron and Madoff
  • So what is “money laundering?”
  • Exercises to demonstrate the new dimensions to money laundering.

Anti Money Laundering

  • Origin
  • Definition
  • Techniques and impact on banks
  • Structuring & integration

The Global Response:

  • The FATF and its Regional Groups
  • The “40 + 9” Recommendations
  • The World Bank and OECD measures
  • UN and related international Treaties and Agreements
  • The EU response and Wolfsberg Principles
  • Transparency International/Egmont/Financial Stability Forum/IOSCO/OGBS etc.


  • Definition of a Customer
  • Transaction profile
  • Organisational structure
  • Important KYC framework
  • Operating guidelines
  • Standards for supervisors & Banks

Essential Elements of KYC Standards

  • Customer acceptance policy
  • Customer identification
  • General identification requirements
  • The role of supervisors
  • Guidelines for opening accounts
  • Qualitative data
  • Joint accounts
  • Minor accounts
  • KYC for existing accounts
  • KYC for low income group customers

Specific Identification Issues

  • Trust nominee and fiduciary accounts
  • Corporate vehicles
  • Introduced business
  • Client accounts opened by professional intermediaries
  • Politically exposed persons
  • Non face to face customers
  • Correspondent banking

Elements of a Risk Based Approach:

  • Local legislation
  • Assessing vulnerabilities and risk
  • The Risk Matrix
  • Customer due diligence
  • Client take on
  • Relying on the others and “equivalence”
  • Monitoring people by staff and/or IT
  • Reporting internal and to law enforcement/local authorities
  • The role of the MLRO/Nominated Officer (NO)
  • Management Information (M.I.) and oversight

Constructing the KYC Framework

  • Policies
  • Roles and Responsibilities
  • Senior Management and M.I. requirements
  • The MLRO/NO (or equivalent) challenge!
  • Risk Assessments and Procedures

Constructing the Anti-Money Laundering (AML) Framework

  • Exercises in constructing risk assessments
  • Training and Awareness
  • Monitoring and record keeping
  • Reporting and dealing with the authorities
  • Review and evaluation
  • Customer research
  • Suspicious transactions

Applying a Risk-Based Approach, to Personal and Business Customer Due Diligence

  • A series of case studies
  • Discussion and Questions

Applying a Risk-Based Approach to Corporate and Trust Structures Due Diligence:

  • Complications of PEPs
  • Enhanced due diligence
  • Offshore “situations” and issues

Implementing and Managing the Total KYC & AMLs:

  • Due diligence (on-going)
  • Record keeping
  • Training
  • Monitoring
  • Reporting
  • Questions/Feedback/Discussion

Case Study: A practical case study to highlight the practical realities of a “joined-up” approach.

Role of Internal/External Audit, etc.

  • Providing Assurance
  • Adding Value
  • A common understanding of risk
  • Lessons from UK failures
  • The contribution of H.R., Training, Risk, I.T. and others

International Sanctions

  • The UN and EU and local legislation
  • Purposes of Sanctions
  • Linkage to ML and other financial crime
  • What to do?
  • How to do it? Exercises & case studies

The US Dimension

  • Extra territoriality- US PATRIOT ACT
  • Correspondent Banking; New York State Law
  • OFAC and Enforcement
  • FCPA, bribery and corruption
  • US domestic AML legislation
  • US civil remedies under the US Code and Anti-Terrorism Act

Illustrations and case studies

The Future – Plenary Session

  • Offshore- G20/G8 etc.
  • Terrorism
  • Proliferation of WMD
  • Proliferation of conventional arms
  • Tax issues
  • International Enforcement
  • Questions & Final Wrap-up of course.

Know Your Customer (and AML)

£ 2001-3000