Introduction to Anti Money Laundering & Counter Terrorism Financing (AML & CTF)

Financial crimes encompass a range of illicit activities that impact economies and national security. This module provides an overview of financial crimes, their classification, and their consequences. Participants will explore key financial crimes such as fraud, corruption, and illicit financial flows, as well as the role of financial institutions and regulatory bodies in mitigating these threats

Money laundering is a critical issue that enables criminals to legitimize illicit funds. This module explains the definition and process of money laundering, including its three main stages: Placement, Layering, and Integration. Participants will also understand the connection between money laundering and terrorism financing, along with methods used to detect suspicious activities.

This module provides an in-depth look at global AML & CTF frameworks, focusing on the role of the Financial Action Task Force (FATF) and key international regulations such as EU Directives and UN Resolutions. The importance of Know Your Customer (KYC) and Customer Due Diligence (CDD) procedures will be emphasized, along with the necessity of international cooperation in combating money laundering and terrorism financing.

Understanding local legal frameworks is crucial for effective compliance. This module covers Somalia’s AML & CTF laws and regulations, highlighting the role of the Financial Reporting Centre (FRC) and other regulatory bodies. Participants will learn about compliance obligations for financial institutions, penalties for non-compliance, and methods for detecting red flags associated with money laundering activities.