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Anti-Money Laundering and Counter-Terrorism Financing Act 2006

   

Added on  2021-02-20

14 Pages4578 Words32 Views
ICA

Table of ContentsINTRODUCTION...........................................................................................................................1PART A...........................................................................................................................................1Assessment and Importance of framework that is used by large Australian bank for conductingAML/CFT risk assessment..........................................................................................................1PART B ...........................................................................................................................................4Business unit should Identify ML/FT risk ..................................................................................4PART C ...........................................................................................................................................6Ways that will help in monitoring, mitigating and identification of ML/FT risk........................6PART D ..........................................................................................................................................7Two AML/CFT risk its impact and measures to control these risk in Bank Vic........................7CONCLUSION ...............................................................................................................................9REFERENCES..............................................................................................................................10

INTRODUCTIONRetail banking is providing financial services to the customers for the purpose of securingtheir money for long term in the future in form of current account, saving account, credit cards ordebit cards etc. Present study will be based on Bank Vic company. It is member owned bank in Australiathat is founded by police officers in 1974 as a credit union. It will be providing services relatedto police and other emergency services employees.(Stanley and Buckley, 2016).Report will emphasize on importance of framework that is being used by anti moneylaundering and counter terrorism financing act 2006 in the banking sector. It will also includebusiness units that is responsible for identifying and managing risk for the future. Furthermore, itwill include compliances that is used to monitor the risk and the key controls that will help inmitigate from the identified risk. PART AAssessment and Importance of framework that is used by large Australian bank for conductingAML/CTF risk assessmentBank Vic is doing assessment of AML/CTF by implementing different software's thatwill be used to detect this type of risk that will help in protecting information and data of thebanks. By adopting new technological changes that will help in assessing risk for the future. AML stands for Anti-money Laundering refers to the policies and procedures that willhelp in monitoring and tracking transactions that will be made in the banks. This help inregulating illegal activities that is being done in the banking. These laws are requiring for bothfinancial institution and crimes that will be responsible for stop all these type of illegal activities(Henning and Hauman, 2017). Anti-money laundering is applicable after the creation ofFinancial Action Task Force. In these standards are set that is governed under the framework ofthis system. After the implementation of FATF will help in identifying countries that do not haveproper legislation regarding Anti-money laundering. Financial institutions are an important part of doing financial crime so it important theymust give proper training that will help in preventing black money in the country. This also hassoftware that is used in detecting any crime that will not be noticed by employees. Everyfinancial institution have to follow the rules and regulations that is written in the moneylaundering system for the purpose of preventing these activities that will occurred in the banks.1

Another agency that is United Nations Office on Drugs and Crime is also helped in stop moneylaundering. This office is having a website that contains all the detail about the money launderingand the measures that will help in preventing it. These type of software will help in preventingfinancial crime and illegal way of doing business like smuggling, gambling etc. CTF stands for Counter Terrorism financing that includes doing investigation, analysingand prevention of sources of funding that will be available for the purpose of doing violence andhelp in protecting terrorist activities that will occur in the company (Iken and Agudelo, 2017).This law mainly emphasize on protecting the identity that destroying different aspects of thecompany. Through this law terrorism can be detected easily and help in preventing variousperspective of the business for future course of action. In finance terrorism it will be evaluatedthat money will be used for the legal purpose in the company that will be helpful for it in thefuture. In this it is easy to detect the way that will help in preventing money through moneylaundering activities. Financial institutions plays an important role in overcome from the problem of financingterrorism. As in Bank Vic this type of law is applicable that will help in preventing illegalactivities from the company. It is also important as it helps in preventing high value transactionsthat will be occurred in the banks. Importance of AML/CTF framework Anti-money laundering consist of different stages that will help in preventing from illegalactivities that will remain beneficial for the company (Buckley and Stanley, 2016). There arethree basic steps that will be used in money laundering framework are as follows:Placement:- In this step money launderer will introduce the money that will be generated fromthe criminal activities into the financial institution. That money will be breakdown into smallamount and then it will be deposited into the bank account. In Bank Vic also money laundererwill collect illegal amount and then deposit it into other financial institution.Layering:- This step will help in protecting the true identity of the bank as the money istransferred into different institutions that will help in preventing it from illegal activities. In thissegmentation is being done for the purpose of preventing its originality from other people. InBank Vic managers will use this technique to protect it from doing illegal activity. This will helpin overcoming from the problem of violence that is occurred in company for the future use. 2

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