Last updated on October 23rd, 2024 at 02:23 pm
As the volumes of transactions keep increasing significantly across the globe, plus the advent of crypto currencies has led to the increase in AML & KYC Roles. In this article we will discuss the AML KYC Certification course which is covered in the certificate in investment banking operations program by mentor me careers.
What is AMLC KYC?
Remember, the time when opening a bank account was tedious with address verification done manually. And only then you would be even be eligible for opening a bank account. While the world has changed and with the increase in digital transactions, opening a bank account and transacting itself has become very easy.
Which poses the next question? How would you verify and validate people while the volume is so high. That’s where of course in India, AADHAR(UIDAI), has simplified things in at least completing the know your customer process. However, the challenge still remains in making sure that none of these transaction done even by identified individuals falls under the suspicious categories of transactions. Which also will easily explain the AML KYC certification course.
AML KYC Process & Framework
So, Ill divide this discussion across two parts, one is AML Framework & the next would KYC Framework.So, that you clearly understand if AML KYC certification makes sense or not, or do you need a larger product knowledge to enter this field.
AML Framework
AML (Anti-Money Laundering) and KYC (Know Your Customer) are crucial regulatory frameworks designed to prevent financial crimes, ensure customer identity verification, and maintain the integrity of financial systems. Here’s a brief overview of their frameworks:
AML (Anti-Money Laundering):
- Objective: Prevent the illegal conversion of “dirty” money (obtained through criminal activities) into “clean” money (appearing legitimate).
- Key Focus Areas:
- Identification of Suspicious Activities: Monitoring and detecting transactions that could be indicative of money laundering.
- Customer Due Diligence (CDD): Thoroughly verifying the identities of customers to ensure their legitimacy.
- Risk Assessment: Evaluating the potential risk of money laundering associated with different customers and transactions.
- Reporting: Obligation to report suspicious transactions to relevant authorities.
- Record Keeping: Maintaining records of customer information, transactions, and due diligence efforts.
- Regulatory Bodies: Financial institutions are required to follow AML regulations set by government agencies and international organizations like the Financial Action Task Force (FATF).
KYC Framework
So, following are the kind of activities that are performed in the KYC activity.
- Objective: Verify the identity of customers to prevent fraud, money laundering, and other financial crimes.
- Key Components:
- Customer Identification: Collecting reliable and authentic identification documents to confirm the customer’s identity.
- Customer Verification: Employing verification methods like in-person verification, document cross-checking, and biometric authentication.
- Risk Profiling: Categorizing customers based on their risk levels to determine the extent of due diligence required.
- Ongoing Monitoring: Continuously monitoring customer activities to detect any unusual or suspicious behavior.
- Importance: Helps establish the legitimacy of customers and aids in maintaining the integrity of financial transactions.
- Application: Applicable across various industries, including banking, fintech, cryptocurrency, and more.
AML KYC Certification
Mentor Me Careers, provides comprehensive training in its AML KYC Certification program, part of the larger program of certificate in investment banking operations course.
Now, let me take you through the course coverage of content in the AML KYC Certification.
AML KYC Certification Syllabus- Certificate in Investment Banking Operations
Module 1: Investment Banking Foundation
- Investment Banking Foundation: Trading termilogies,Various methods of exchange,Recording details of a trade witb case study,Actual trade order case study,structure of investment banks, functions and roles
- Equity & Markets Strucuture I:Classification of markets,tyoes of securities,financial intermediaries,long and short positions,leverage ratio,execution and clearing instructions, security market indices
- Equity & Market Structure II:Index construction method, types of index, rebalancing and reconstitution, Types of fixed income indices, Indices for alternative investments, financial markets.
- Derivatives Instruments I:Concept of arbitrage, forward and future contracts, forward rate agreement, swap contracts,, value of options(in the money, out of money)
- Derivatives Instruments II:Exchange-traded versus over the counter instruments,forward claims and contingent claims,value at expiration calculation,purpose of derivate markets
- Fixed Income Securities I:Classfication of global fixed income markets,interbank rates,primary versus secondary markets for bonds,types of bonds- sovereign, corporate. Short term funding for banks
- Fixed Income Securities II:Features of a bond- coupon, rate, yield curve,bond covenants,regulatory, legal and tax considerations for bonds, fixed income cash flow structures,contingency provisions
- Asset Management:Portfolio approach to investing,steps in portfolio management process, types of investors,defined contribution and defined benefit plans,aspects of asset management, mutual fund industry
- Corporate Governance:Stakeholder groups and their interests,conflicts in stakeholder management, board of directors and functions, risks of poor governance,ESG Considerations
Module 2: Trade Operations Part 1
- Trade Execution:Order placement, types of investors, different types of orders, trade capture front office
- Trade Agreement:Trade confirmation and agreement template, transmission methods, settlement instructions,Risk in settlement
- Custodian:Roles of the custodian, types of the custodian, custodian selection, unmatched instructions, Updating STO books and records
- Settlement Failure:Causes of settlement failure, preventing settlement failure, enforcing trade settlement,trade settlement methods,netting
- SWIFT:Identifiers,benefits of SWIFT,Development of SWIFT and swift codes
- Internal Reflection:Pre-settlement trade order, Post settlement trade record, Updating failure,Unsettling a trade internally
Module 3: Trade Operations Part 2
- Securities Lending & Borrowing:Principles of lending and borrowing,Updating internal records for lending and borrowing, Calculation
- Safe Custody:Safe custody legal agreements,external custodians, taxation of external accounts, valuing clients securities, advanced safe custody services
- Corporate Actions:Concept of corporate actions, Types of corporate actions, Announced benefits, unannounced benefits, dividends timeline, Bonus shares,stock splits,take overs
- Reconciliation:Reconciliation terminologies, types of reconciliation, methods of reconciliation, manual versus automated reconciliation, independence of the function and benefits
Module 3: AML KYC Certification & Risk Management
- Risk Management:Risk management process, risk management types, financial risk management, operational risk management, and mitigating risk
- Anti Money Laundering:Sources of money laundering, stages of money laundering, popular methods used, AML Regulations U.S,KYC program,KYC process, customer due diligence
- Basic Excel:Cell referencing, data table, pivot table, look up, H look up, charts, Logical operator functions, Excel dashboards, slicer and timeline
- Interview Preperation:Domain mocks, pre-interview mocks, written tests for practice, extra classes for weak students
AML KYC Certification Learning Options
Self Paced – Basic
- Pre-recorded Videos
- Forum Support
- 1 Year Content Access
- Course Certification
- Fees – ₹5499 (+ GST)
Self Paced – Plus+
- Personal Mentorship*
- Lifelong Content Access*
- Course Certification
- Community Access
- Fees – ₹10999 (+ GST)
Live Online – Basic
- Live Online Classes *
- Personal Mentorship*
- Lifetime Content Access
- Course Certification
- Fees – ₹16499 (+ GST)
Live Online – Plus+
- Live Online Classes *
- Placement Assistance
- Lifetime Content Access
- Course Certification
- Fees – ₹27499 (+ GST)
AML KYC Certification Placements
