List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Analyse requirements and develop risk evaluation criteria | 1.1 Review all stages of the risk assessment process, including identification, assessment, evaluation, mitigation and monitoring, related to organisational requirements 1.2 Analyse relevant industry related typologies including those issued by Australian Transaction Reports and Analysis Centre (AUSTRAC) annually 1.3 Evaluate and select appropriate risk management tools for the organisation 1.4 Develop risk criteria to evaluate risk appropriate to the organisation 1.5 Formulate and document risk management methodology including assessing risk appetite and a holistic organisational money laundering and terrorism financing risk review process |
2. Assess the organisation’s current exposure | 2.1 Analyse the organisation's operations, including products offered, clients, systems, channels of access and geographical sphere 2.2 Analyse the vulnerability of the organisation to money laundering and terrorism financing risks 2.3 Assess and evaluate the overall level of risk posed to the organisation ensuring the level is within the stated risk appetite tolerance |
3. Design and implement controls | 3.1 Evaluate risk mitigation controls already in place and assess if proportionate to the nature, size and complexity of the organisation 3.2 Determine risks that have ineffective or insufficient controls 3.3 Discuss risk management deficiencies with relevant stakeholders and identify controls required 3.4 Allocate responsibility for managing the controls to senior managers within the organisation 3.5 Work with stakeholders to implement controls where required |
4. Monitor and maintain the effectiveness of controls | 4.1 Review the organisation’s overall risk assessment addressing methodology, and changes within the organisation and to the legislative and regulatory landscape 4.2 Implement processes to regularly monitor and assess the effectiveness of mitigation controls 4.3 Analyse deficiencies and work with stakeholders to ensure remediation 4.4 Report deficiencies to relevant stakeholders including management, the Board and the audit and risk manager 4.5 Report significant breaches to relevant authorities including AUSTRAC 4.6 Monitor the implementation of improvements and changes to mitigation controls 4.7 Research and analyse changes to the industry and environment that may increase risk and necessitate changes to controls |
Evidence of the ability to:
document risk assessment criteria for an organisation
design and implement risk assessment controls for an organisation
monitor and report on the effectiveness of controls implemented.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
To complete the unit requirements safely and effectively, the individual must:
explain a range of risk criteria relevant to the evaluation of anti-money laundering and counter terrorism financing (AML/CTF) processes
explain money laundering and terrorism financing (ML/TF) risk assessment process, including identification, assessment, evaluation, mitigation and monitoring
compare and contrast ML/TF risk management tools used in organisations
discuss organisational processes and procedures for implementing ML/TF risk mitigation controls
outline the key features and requirements of the legislative, regulatory and industry requirements for AML/CTF.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the AML/CTF field and include access to:
relevant legislation, regulations, standards and codes
relevant organisational records, policies and procedures
organisational reporting system for suspicious transactions or case study scenarios.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.