Recognize red flags associated with
suspicious financial activities and detect unusual transaction patterns. Learn
how to prepare and submit STR/SAR reports to meet regulatory standards.
Learning Objectives:
- Understand the importance of identifying red flags related to suspicious activities in financial transactions.
- Learn the key indicators of money laundering, terrorist financing, fraud, and other illicit activities.
- Develop skills to detect and assess unusual patterns or behaviors that require reporting.
- Master the process of preparing and submitting Suspicious Transaction Reports (STR) and Suspicious Activity Reports (SAR) in compliance with regulatory requirements.
- Explore global regulations and best practices for STR/SAR reporting (FATF, EU, OFAC).
- Learn how to handle and document internal investigations triggered by red flag indicators.
- Understand the legal implications of non-compliance and the consequences of failing to report suspicious activities.
Course Outline:
Introduction to Red Flags and STR/SAR Reporting:
- Definition and significance of STRs and SARs in combating financial crime.
- Overview of money laundering and terrorism financing red flags.
Identifying Red Flags in Financial Transactions:
- Common red flags related to customer behavior, transaction patterns, and geographic risks.
- Red flags in specific sectors (banking, real estate, trade, etc.).
- Emerging red flags in digital currencies and online transactions.
STR/SAR Reporting Process:
- When and how to file an STR/SAR.
- Key components of an effective STR/SAR, including accurate documentation and description of suspicious activity.
Regulatory Requirements for STR/SAR Reporting:
- Global standards and obligations for STR/SAR reporting (FATF recommendations, local laws).
- Understanding reporting obligations under different jurisdictions (e.g., EU, OFAC).
Internal Investigations and Documentation:
- Conducting investigations triggered by suspicious activities.
- How to document findings and ensure thorough investigation reports.
Best Practices in Reporting and Compliance:
- Avoiding common errors in STR/SAR submissions.
- Engaging with regulators and Financial Intelligence Units (FIUs) for follow-up.
- Protecting the organization from legal consequences through proper reporting
Duration:
Days (including practical exercises on red flag identification and report preparation).
Level: Intermediate
- Suitable for compliance officers, risk managers, AML officers, and financial professionals involved in transaction monitoring and reporting.
Prerequisite:
Basic understanding of AML/CFT principles and financial regulations.
Category:
- Financial Crime/AML Compliance
- Risk Management/Regulatory Reporting
