Risk-based Approach for Financial Institutions, Designated Non-Financial Business Professions and Virtual Asset Service Providers
6 ECTS
Risk-based Approach for Financial Institutions, Designated Non-Financial Business Professions and Virtual Asset Service Providers
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Module Description
In this module, you will address the full spectrum of risks and how to focus resources where the risks are highest.
This module aims at ensuring that supervisors and supervised entities primarily understand the money laundering and terrorism financing (ML/TF) risks in their country and of their respective sectors and business by identifying and assessing possible risks.
You will also delve into the why and how a risk-based approach is less burdensome on lower risk sectors or activities, and for obliged entities to continuously update their understanding of risk and adjust and improve their supervisory approach.
Entry Requirements
Candidates who apply for this course must possess one of the following:
• Level 6 Degree related to one of the following areas: Law, Artificial Intelligence, Finance, Accounting, Governance, Business and Government Policy;
OR
• Level 5 Diploma or Higher Diploma and 4 years’ work experience, preferably in a supervisory or managerial role;
OR
• Level 6 degree not related to Law, Artificial Intelligence, Finance, Accounting, Governance, Business and Government Policy and a minimum of two years relevant experience.
Target Audience
This course is targeted at people within the financial and banking sector, legal sector, governance sector, business sector, artificial intelligence sector, and other individuals seeking professional and academic advancement in the field of Anti-Money Laundering and Compliance.
Module / Unit Instructions
The proposed structure comprises a blended approach promoting the building of a community of practice via peer-to-peer learning. The structure uses primarily two dimensions of teaching-learning modes:
1. Face-to-face sessions: 18 hours
2. Online Learning Activities: 12 hours
Face to Face sessions
Face-to-face sessions include lectures, tutorials, discussions, presentations and workshop activities promoting peer-to-peer learning.
Online Learning Activities
Online learning activities incorporate tutorials and asynchronous discussions. These may consist of active interaction, participation and contributions in fora discussions, sharing resources and self-reflection exercises.
Learners also contribute to the building of the community of practice by providing feedback to their peers as critical friends, enhancing the learner’s critical engagement throughout the study period.
The tutor provides continual support during both teaching -learning modes by providing information, readings and tasks relevant to the module in question.
The tutor provides continuous formative feedback as an on-going guidance during the student’s learning experience in preparation for their summative assessment.
How you’ll be assessed
This module consists of two assessment tasks, each carrying a weighting as below:
a) Assessment 1 carries 20% of total module mark achieved. b) Assessment 2 carries 80% of total module mark achieved.
For successful completion of a study module the student is required to achieve a minimum of 50% pass mark in both Assessment 1 and Assessment 2
The overall grade achieved for each module is calculated as the sum of: • 20% of the mark achieved for Assessment 1; and • 80% of the mark achieved for the Assessment 2.
Both Assessment 1 tasks and Assessment 2 tasks aim to provide the learner an opportunity to produce evidence of his/her competences aligned to the learning outcomes of each individual Module.
a) Assessment 1 tasks are provided in the form of structured online discussions that support learners in their development throughout all of the modules studied.
Such discussions are facilitated and monitored by lecturer who provides students with constructive feedback to help them improve and prepare for Assessment 2 and the dissertation.
Assessment 1 tasks will contribute to the student’s final mark to acknowledge their work and give them chance to improve.
This method allows students to also contribute to the building of a community of practice by providing feedback to their peers as critical friends, enhancing the learner’s critical engagement throughout the study period.
b) Assessment 2 consists of one assignment at the end of the module.
The mode of assessment varies and may include in-class assignments, and home-based written assignments.
The recommended assessment tool for this module is an essay.
For successful completion of this module the student is required to achieve a minimum of 50% pass mark in both Assessments 1 and 2 respectively.
Module Intake Dates
October 2024
Learning Outcomes
Competences:
At the end of the module/unit the learner will have acquired the responsibility and autonomy to:
- Perform an overall ML/TF risk assessment with respect to their supervisory process and business operations and determine which factors need to be taken into account.
- Carry out a risk-based approach versus a rule-based approach.
- Assess what constitutes high risk and what type of risks exists in every sector.
- Tailoring supervision to address the relevant ML/TF risks.
- Ability to align the operations and due diligence with the risk profile.
Knowledge:
At the end of the module/unit the learner will have been exposed to the following:
- Analyze how supervisors should assess the risks their supervised sectors face and prioritise their activities, in line with the FATF Standards’ risk-based approach.
- Adopt strategies to address common challenges in risk-based supervision & jurisdictional examples, including examples of strategies for supervising non-financial businesses and professions and virtual asset service providers.
- Moving beyond a tick-box approach from both the subject person and the supervisory authority perspective to curb money laundering and terrorist financing.
Skills:
At the end of the module/unit the learner will have acquired the following skills:
- Support the development of a common understanding of what the risk-based approach involves.
- Carry out a risk assessment of the business and developing a risk management system.
- Outline the high-level principles involved in applying the risk-based approach.
- Determining the frequency and intensity of AML/CFT supervision of DNFBPs on the cognizance of the ML/TF risks, taking into consideration the characteristics of the DNFBPs. · Monitoring and reviewing the ML/TF risks. Conduct jurisdictional risk assessments (JRAs).
Module-Specific Digital Skills and Competences:
At the end of the module/unit, the learner will be able to:
- Navigate through the online learning platform to find assignments, discussion boards, literature, tutorials etc.