Anti-Money Laundering(AML)/Combating Financing Terrorism(CFT) - India in the Global Context

  An audit is a detailed examination of a company's financial records, tax returns, internal processes, or operations to ensure accuracy and compliance. The word "audit" comes from the Latin word audire, which means "to hear".   There are several types of audits, including: Financial audits Verify the fairness of an organization's financial statements.  Performance audits Also known as management audits, these audits evaluate the efficiency and effectiveness of government programs or agencies.  IRS audits Review an individual's or organization's books, accounts, and financial records to ensure that tax returns are reported correctly.  IT audits Examine an organization's information technology, including physical and environmental security, logical security, change management, backup and recovery, incident management, and information security.  AML/CFT Audit The significance of AML/CFT audit are as follows: AML/CFT Audit is Independent function ...

  Money laundering is defined as criminal proceeds finding their way into the formal economy via a web of transactions that conceal their true origins. Terrorist financing can come from rogue regimes or terrorist organisations that feed their cells worldwide under trade payments, investments, remittances and money for education.   Financial institutions are required by their regulatory authorities to provide all employees with an annual anti-money laundering certification training.  Regular AML/CFT Risk Awareness training enhances employees’ vigilance against the latest ML/TF risks faced by the business and their role in mitigating this risk   The RE may get the AML/CFT framework designed and invest in the best of the AML technology, but it is of no use unless it has well-trained and competent manpower to effectively implement this AML framework or optimally use the AML software. Objectives of AML/CFT Training and Awareness Program The  AML training ...