Course Content:
1. What is financial crime?
Introduction
• Introductory case video
• What would you do?
• Feedback
• Learning objectives

Types of financial crime
• What is financial crime?
• Money laundering
• Money laundering (Case example)
• Money laundering for cryptoasset (Case example)
• Terrorist financing
• Detecting terrorist financing (Case example)
• Sanctions evasion
• Sanctions evasion (Case example)
• Fraud
• Fraud (Case example: Voice phishing)
• Fraud in cryptoasset (Case example)
• Bribery and corruption
• Bribery and corruption (Case example)
• Tax avoidance versus tax evasion
• Tax avoidance versus tax evasion (Case example)
• Tax avoidance versus tax evasion in cryptoasset (Case example)
• Cybercrime
• Cybercrime (Case example) Review
• Review questions

2. Financial crime risk
What is risk?
• Types of risk: Regulatory, legal, financial, reputational
• International regulations and guidance
• Categories of risk: Customer, jurisdiction, product, channel

Customer risk
• Customer risk and red flags
• Beneficial ownership
• Ultimate beneficial ownership
• Politically exposed person risk and red flags
• Shell company risk and red flags
• Cash-intensive business risk and red flags

Jurisdiction risk
• Jurisdiction risk and red flags
• Jurisdiction risk and red flags (Case example)

Product risk
• Product risk and red flags
• Charity and NGO risk and red flags
• Trade finance risk and red flags
• Cryptoasset risk and red flags

Channel risk
• Channel risk and red flags
• Electronic transfer of funds risk and red flags
• Remote deposit capture risk and red flags

Risks specific to your business
• Dark markets risk and red flags
• Dark markets risk and red flags (Case example) Mixers and tumblers risk and red flags
• Mixers and tumblers risk and red flags (Case example)
• Cryptoasset and gaming risk and red flags
• Cryptoasset sanctions indirect risk and red flags

Review
• Review questions

3. Controlling risk
Risk-based approach
• Risk-based approach to business
• Controlling risk
• Residual risk equation

Know your role in compliance
• Three lines of defense industry
• Risk-based escalation
• Independence of the second line
• Role of the money laundering reporting officer
• Audit as the third line of defense
• The three phases of customer research

Know your customer
• KYC is intended to manage risk
• KYC is intended to manage risk (Case example)
Transaction monitoring
• Transaction monitoring is intended to manage risk
• Transaction monitoring process
• Transaction monitoring (Case example)

Sanctions compliance
• Regulations related to sanctions compliance
• Internet search: Sanctions screening • Transaction monitoring versus name screening
• Sanctions (Case example)

Review
• Review questions

4. Research and reporting
Research process
• Investigative mindset
• Four research steps
• Levels of due diligence
• CDD for a natural person
• CDD for a legal person

Information sources
• Criteria for selecting standard customer research sources for cryptoasset
• If you need more information
• Tipping off

Organizing what you learn
• How much research is reasonably enough?
• Following organization-specific policies and procedures
• Filter what customer information is relevant and important for cryptoasset
• Data security and privacy
• Documenting your research
• Customer profile structure and format

Your obligation
• Duty to report
• Suspicious activity escalation process

How your organization might act
• What is a suspicious activity report?
• Who writes a SAR in your organization?

Transaction monitoring and ongoing reviews
• Maintaining an account after unusual activity
• Refusing or terminating a customer

Review
• Review questions