University Finance Assignment: ML/TF Risk Mitigation and Control

This assignment delves into the critical area of Money Laundering and Terrorist Financing (ML/TF) risk mitigation within financial institutions, particularly in the Australian context. It addresses the identification of ML/TF risk mitigation controls for reporting entities, emphasizing the implementation of processes for regular monitoring and assessment of control effectiveness. The assignment also explores the challenges associated with implementing such processes, including issues related to faulty migration approaches, IT complexities, and cybersecurity concerns. Furthermore, it examines the premise that designing a control is easier than gaining stakeholder commitment for its implementation, providing reasons for this perspective and outlining strategies for engaging stakeholders to ensure the successful implementation and management of controls. The assignment references key literature, including works by Hopton, Coronel and Morris, and Chang, to support its arguments and provide a comprehensive understanding of the subject matter.

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author Note:

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Question no 1:
Identify an ML or TF risk mitigation control for a reporting entity. How you would
implement processes to regularly monitor and assess the effectiveness of this control?
What are the main issues you would be likely to encounter when implementing such
processes?
Answer to Question No 1:
Money Laundering and Terror Financing have become two of the most important
source of risks for the different organizations in Australia (Imf.org. 2019). Australia’s
terrorism financing is dependent on the international factors that are generally sectarian and
beyond the immediate region of the country. There are different kinds of links that exist in
between the terrorist groups and radical groups present in Australia. This links tend to disrupt
the economy as there are cases when the economy engages into black and suspected
transactions to enable terror financing. At present the conflicts in Iraq and Syria poses the
major challenge to the economic system of the island continent. The terrorism financing of
the country can be traced to the links of the radical groups of the country with the terror
groups of Syria and Iraq. There are cases when large volume of aids and other financial
support sent to these war ravaged countries are disguised and thus acts as the source of terror
financing. This clearly suggests the use of new methods adopted by the radical groups to send
money to the terrorism sponsors of Syria and Iraq (Hopton 2016). There are also cases when
cash has been physically send to the terrorist groups of Syria by means of conduit couriers
from Australia. The AML/CTF policies has created number of different acts like The
Criminal Code Act 1995 mitigates these kinds of suspected transactions. Apart from this
there are UNSC and Australian autonomous sanctions that has the capability to restrict the

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transactions. Recently different individuals from Sydney and Melbourne have been arrested
as a result of their involvement in suspected terror financing in Syria.
According to, Hopton (2016) the different institutions and especially the banks and
financial institutions face serious challenges that can be mostly referred to as the problems in
the faulty migration approaches. The rise in suspected transactions and increase in different
types of the IT complexities along with the gradual rise in modified cyber security challenges
as led to a tough situation for the enterprises to properly implement the different kinds of the
challenges in the organization accordingly.
Question No 2:
‘Designing a control is the easy part: the hard part is gaining the commitment of staff
across the organization to implement and manage the control.’
Do you agree with this premise? Provide reasons for your answer. What strategies could be
adopted to engage stakeholders and gain their commitment to implement and manage a
control?
Answer to Question No 2:
The above said premise about the designing of the control is easy while its
implementation is really hard is absolutely true and widely accepted. The proper
implementation of the design in the organizations is not so easy as because at the very
beginning of the implementation of the change, the employees are the ones to offer the
resistance(Coronel and Morris2016). The absence of proper leaders leads to the struggle of
the organization as they fail to motivate and understand the employees about the importance
of the changes or the new design (Coronel and Morris2016). Most of the employees resist the
design and the change process more so ever as they have the belief that they might lose

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something or the other from the new design implementation and in worst cases, fear of losing
the job.
According to, Chang (2016) in order to ensure the smooth implementation of the
different elements in the organization, the business enterprise must at first ensure the support
of the business stakeholders in the most appropriate manner to ensure business success. The
presence of the business stakeholders in the designing of the plans can be essential for the
success of the business in the most appropriate manner. The business organization must also
present a detailed understanding of the changes and the new design to be implemented in the
business organization. The confidence of the stakeholders and the employees are thus needed
in order to ensure business success.

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References
Chang, J.F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Coronel, C. and Morris, S., 2016. Database systems: design, implementation, & management.
Cengage Learning.
Hopton, D., 2016. Money laundering: a concise guide for all business. Gower.
Imf.org. (2019). Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT)
- Topics. [online] Available at: https://www.imf.org/external/np/leg/amlcft/eng/aml1.htm
[Accessed 2 Aug. 2019].