Anti-Money Laundering and Financial Crime Risk Management

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Duration 3 days – 21 hrs

 

Overview.

 

The Enterprise Risk Management (ERM) for Banks Training Course is designed to provide banking professionals with a comprehensive understanding of ERM principles and practices. This course focuses on developing a holistic approach to managing all types of risks in banking—including credit, market, operational, and liquidity risks—through an integrated ERM framework. Participants will learn how to create risk governance structures, establish risk appetite, align with regulatory standards, and foster a risk-aware culture within the organization.

 

Objectives

 

  • Identify and assess AML-related risks in financial transactions and customer profiles.
  • Conduct effective customer due diligence (CDD) and know-your-customer (KYC) procedures.
  • Implement robust transaction monitoring and reporting mechanisms to detect suspicious activities.
  • Apply a risk-based approach to AML that aligns with regulatory standards.
  • Understand the regulatory expectations and penalties for non-compliance with AML requirements.

 

Audience

  • AML Compliance Officers
  • Risk and Compliance Managers
  • Bank Officers and Relationship Managers
  • Internal Auditors focusing on compliance and risk management
  • Legal and Regulatory Affairs Professionals in banking
  • Financial Crime Investigators and Analysts
  • Banking Professionals involved in customer onboarding and transaction monitoring

Pre- requisites 

 

  • Basic understanding of financial transactions and banking operations.
  • Familiarity with compliance principles is beneficial but not required.

 

Course Content

 

Introduction to Anti-Money Laundering (AML) and Financial Crime

  • Overview of financial crime and its impact on the banking sector
  • Key principles and objectives of AML regulations
  • Introduction to Philippine AML laws and international AML standards

AML Risk Identification and Assessment

  • Understanding the risk of money laundering and financial crime
  • Key factors in assessing AML risk: geography, product type, customer type, and transaction type
  • Building effective AML risk assessment frameworks within financial institutions

Customer Due Diligence (CDD) and Know Your Customer (KYC)

  • Importance of CDD and KYC in AML compliance
  • Conducting customer due diligence: identity verification and profiling
  • Enhanced due diligence (EDD) for high-risk customers
  • Ongoing monitoring and periodic reviews of customer relationships

Transaction Monitoring and Reporting

  • Key components of transaction monitoring systems
  • Identifying and investigating suspicious transactions
  • Filing suspicious transaction reports (STRs) and currency transaction reports (CTRs)
  • Best practices for managing regulatory reporting requirements

 

Risk-Based Approach to AML

  • Overview of the risk-based approach in AML compliance
  • Tailoring AML measures based on risk profiles and regulatory requirements
  • Balancing compliance with operational efficiency
  • Case studies: Effective risk-based approaches in AML compliance

Regulatory Expectations and Penalties

  • Overview of the regulatory landscape for AML in the Philippines
  • Key AML regulatory bodies and their roles (e.g., BSP, AMLC)
  • Understanding penalties for non-compliance with AML laws
  • Preparing for regulatory audits and minimizing penalties

Implementing AML Policies and Procedures

  • Developing and implementing AML policies and procedures in financial institutions
  • Training staff on AML regulations and best practices
  • Role of internal audits and assessments in ensuring compliance

Case Studies and Practical Application

  • Analysis of AML case studies involving Philippine and international banks
  • Lessons learned and best practices from real-world AML scenarios
  • Workshop: Conducting an AML risk assessment and implementing a CDD program

Emerging Trends and Future Considerations in AML

  • Understanding the impact of technology on AML (e.g., AI and machine learning for transaction monitoring)
  • Emerging trends in AML regulations and the future of financial crime prevention
  • Adapting AML frameworks to counter evolving financial crime tactics

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Warehouse Operations and Inventory Management Training Course     Duration 2 Days – 14 hrs.   Overview   This course provides a practical understanding of warehouse operations and inventory management for personnel who supervise, review, or audit warehouse processes. It covers the movement of goods from receiving through dispatch, with emphasis on warehouse layout, storage systems, picking strategies, stock rotation, inventory accuracy, and operational controls.   Participants will learn to identify process weaknesses, investigate stock discrepancies, reduce shrinkage, and interpret warehouse productivity indicators. The course connects day-to-day warehouse activities with the records, controls, and performance measures needed for effective supervision and auditing.   Objectives  

  • Explain warehouse processes and their impact on inventory accuracy and service performance.
  • Evaluate warehouse layouts, storage systems, and product locations.
  • Identify appropriate controls for receiving, put-away, storage, picking, and dispatch.
  • Apply First-In, First-Out (FIFO) and First-Expired, First-Out (FEFO) principles.
  • Compare picking strategies based on order characteristics and operational requirements.
  • Identify causes of inventory discrepancies and recommend corrective actions.
  • Develop a cycle counting approach based on inventory value, movement, and risk.
  • Recognize sources of shrinkage and recommend preventive and detective controls.
  • Interpret warehouse productivity and inventory performance KPIs.
  • Review warehouse processes using supporting records, observations, and control evidence.
        Target Audience  
  • Warehouse supervisors, team leaders, and managers.
  • Inventory controllers and stock control personnel.
  • Logistics and distribution supervisors.
  • Internal auditors and operational compliance personnel.
  • Supply chain and operations professionals.
  • Personnel responsible for reviewing warehouse controls and performance.
  Prerequisites  
  • Basic familiarity with warehouse, logistics, or inventory activities.
  • General understanding of business processes and operational documentation.
  • Basic numerical skills, including percentages and simple calculations.
  • Basic spreadsheet skills are helpful.
  • No prior experience with a specific Warehouse Management System (WMS) is required.
   

Course Outline

  Day 1: Warehouse Processes, Layout, and Storage Controls Module 1: Warehouse Operations and Process Controls  
  • Warehouse roles within the supply chain.
  • End-to-end flow: receiving, put-away, storage, replenishment, picking, packing, and dispatch.
  • Physical stock movement and corresponding system transactions.
  • Responsibilities, authorization, and segregation of duties.
  • Common operational weaknesses and audit evidence.
  Module 2: Warehouse Layout and Storage Systems  
  • Functional zones, movement paths, and space utilization.
  • Receiving, storage, picking, staging, and dispatch areas.
  • Storage options: floor stacking, shelving, pallet racking, and bin storage.
  • Fixed and dynamic location systems.
  • Product slotting based on movement, size, handling needs, and compatibility.
  • Layout bottlenecks and their effects on productivity and inventory control.
  Module 3: Receiving and Put-Away  
  • Purchase orders, delivery documents, and expected receipts.
  • Quantity, condition, and item identification checks.
  • Recording shortages, overages, damage, and discrepancies.
  • Controls for acceptance, quarantine, and release.
  • Put-away rules and location confirmation.
  • Traceability through labels, barcodes, lot numbers, and serial numbers.
  • Timely recording of receipts and stock movements.
  Module 4: Storage, Stock Rotation, and Replenishment  
  • Storage discipline and location integrity.
  • FIFO and FEFO principles, applications, and limitations.
  • Batch, lot, and expiry-date management.
  • Controls for slow-moving, obsolete, damaged, and expired stock.
  • Replenishment of picking locations.
  • Supervision and review of stock rotation compliance.
    Day 2: Order Fulfillment and Inventory Accuracy Module 5: Picking Strategies and Order Fulfillment  
  • Discrete, batch, zone, and wave picking.
  • Selecting picking strategies for different order profiles.
  • Pick paths, location sequencing, and travel reduction.
  • Replenishment coordination and stock availability.
  • Picking verification and error prevention.
  • Packing, staging, and dispatch confirmation.
  • Handling short picks, substitutions, cancellations, and returns.
  Module 6: Inventory Records and Accuracy Controls  
  • Item master data, units of measure, and location records.
  • On-hand, available, allocated, and quarantined stock.
  • Transaction controls for receipts, transfers, issues, returns, and adjustments.
  • Common causes of physical and system stock mismatches.
  • Barcode scanning and WMS control points.
  • Inventory reconciliation and supporting documentation.
  • Measuring inventory accuracy and interpreting discrepancies.
  Module 7: Cycle Counting and Physical Inventory  
  • Cycle counting versus full physical inventory.
  • ABC classification and risk-based count priorities.
  • Count frequency based on value, movement, and discrepancy history.
  • Count preparation, blind counting, and movement controls.
  • Recounts, variance investigation, and adjustment approval.
  • Root cause analysis and corrective action follow-up.
  • Reviewing the effectiveness of the counting program.
  Module 8: Shrinkage Reduction and Inventory Protection  
  • Sources of shrinkage: loss, damage, theft, misplacement, and recording errors.
  • Access controls and accountability for stock movements.
  • Controls for high-value and sensitive inventory.
  • Returns, write-offs, scrap, and disposal controls.
  • Exception reporting and unusual transaction patterns.
  • Investigating recurring losses and unexplained adjustments.
  • Preventive and detective controls for shrinkage reduction.
    Day 3: Performance Management, Process Review, and Improvement Module 9: Warehouse Productivity and Inventory KPIs  
  • Receiving productivity and dock-to-stock time.
  • Put-away productivity and replenishment performance.
  • Picking productivity and order accuracy.
  • Inventory accuracy and cycle count variance.
  • Space utilization and storage capacity.
  • Shrinkage, damage, and expiry indicators.
  • Defining KPI formulas, data sources, and reporting boundaries.
  • Interpreting trends while balancing speed, accuracy, and service.
      Module 10: Supervising and Auditing Warehouse Processes  
  • Process mapping and identification of critical control points.
  • Reviewing procedures against actual warehouse practices.
  • Tracing transactions from documents to systems and physical stock.
  • Reviewing approvals, access rights, and segregation of duties.
  • Identifying control gaps and recurring process exceptions.
  • Documenting findings with clear supporting evidence.
  • Prioritizing corrective actions and tracking closure.
  Module 11: Warehouse Improvement Planning  
  • Identifying bottlenecks, unnecessary movement, and rework.
  • Improving layout, slotting, and picking arrangements.
  • Addressing inventory discrepancy root causes.
  • Standardizing transaction recording and exception handling.
  • Assigning improvement owners and measurable targets.
  • Monitoring results and sustaining operational improvements.
  Module 12: Capstone — Warehouse Operations and Inventory Improvement Plan  
  • Review a warehouse scenario containing layout, transaction, inventory, and performance information.
  • Identify weaknesses across receiving, put-away, storage, picking, and dispatch.
  • Recommend appropriate FIFO or FEFO controls.
  • Develop a cycle counting and inventory reconciliation plan.
  • Propose controls to reduce shrinkage and improve traceability.
  • Select relevant KPIs and define their calculation and reporting requirements.
  • Produce a prioritized improvement plan with responsibilities and expected outcomes.
 

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