Assessor Resource

FNSINC502
Assess financial products and services vulnerability to money laundering and terrorism financing

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to develop and maintain an in-depth knowledge of the financial products and services provided by an organisation, or those an organisation uses, and how they may be applied to client needs.

It applies to individuals who work in various financial services industry job roles and with a wide range of financial products or services.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)


Evidence Required

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 products and services the organisation uses

1.1 Identify products and services used by an organisation or sector and determine their purpose

1.2 Analyse characteristics of products and services and their strengths, weaknesses, terms and conditions

1.3 Document function of each product and service and client needs it satisfies

2. Undertake a money laundering and terrorism financing (ML/TF) risk assessment of organisation’s products and services

2.1 Analyse characteristics of products and services to determine their potential use for money laundering and/or terrorism financing

2.2 Conduct ML/TF risk assessment of products and services for organisation

3. Recommend end enhancements to anti-money laundering and counter terrorism financing (AML/CTF) systems to manage specific vulnerabilities of products and services

3.1 Collect and assess information about existing AML/CTF controls

3.2 Determine appropriate enhancements to system controls for managing ML/TF risks for specific products and services

3.3 Prepare recommendations for enhancing AML/CTF systems

4. Maintain product knowledge

4.1 Review relevant products and services regularly and apply any changes to terms and conditions in daily work

4.2 Establish and use systems for keeping up with changes and maintaining up-to-date knowledge about relevant products and services

4.3 Review emerging trends affecting financial services industry and apply to product and service knowledge

Evidence of the ability to:

maintain currency of knowledge of financial products and their compliance requirements, analyse the potential use of these products in money laundering and terrorism financing, and assess anti-money laundering and counter terrorism financing (AML/CTF) controls.

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 systems that can be accessed to obtain up-to-date information on products and services

describe the products and services used by the organisation or sector and their purpose

outline compliance requirements for products and services used by the organisation or sector

describe characteristics of products and services that make them vulnerable to money laundering and terrorism financing

assess AML/CTF controls

outline general client characteristics and needs for the organisation or sector.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the industry capability field and include access to:

common office equipment, technology, software and consumables

financial services product information.

Assessors must satisfy NVR/AQTF assessor requirements.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Analyse products and services the organisation uses

1.1 Identify products and services used by an organisation or sector and determine their purpose

1.2 Analyse characteristics of products and services and their strengths, weaknesses, terms and conditions

1.3 Document function of each product and service and client needs it satisfies

2. Undertake a money laundering and terrorism financing (ML/TF) risk assessment of organisation’s products and services

2.1 Analyse characteristics of products and services to determine their potential use for money laundering and/or terrorism financing

2.2 Conduct ML/TF risk assessment of products and services for organisation

3. Recommend end enhancements to anti-money laundering and counter terrorism financing (AML/CTF) systems to manage specific vulnerabilities of products and services

3.1 Collect and assess information about existing AML/CTF controls

3.2 Determine appropriate enhancements to system controls for managing ML/TF risks for specific products and services

3.3 Prepare recommendations for enhancing AML/CTF systems

4. Maintain product knowledge

4.1 Review relevant products and services regularly and apply any changes to terms and conditions in daily work

4.2 Establish and use systems for keeping up with changes and maintaining up-to-date knowledge about relevant products and services

4.3 Review emerging trends affecting financial services industry and apply to product and service knowledge

Evidence of the ability to:

maintain currency of knowledge of financial products and their compliance requirements, analyse the potential use of these products in money laundering and terrorism financing, and assess anti-money laundering and counter terrorism financing (AML/CTF) controls.

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 systems that can be accessed to obtain up-to-date information on products and services

describe the products and services used by the organisation or sector and their purpose

outline compliance requirements for products and services used by the organisation or sector

describe characteristics of products and services that make them vulnerable to money laundering and terrorism financing

assess AML/CTF controls

outline general client characteristics and needs for the organisation or sector.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the industry capability field and include access to:

common office equipment, technology, software and consumables

financial services product information.

Assessors must satisfy NVR/AQTF assessor requirements.
Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Identify products and services used by an organisation or sector and determine their purpose 
Analyse characteristics of products and services and their strengths, weaknesses, terms and conditions 
Document function of each product and service and client needs it satisfies 
Analyse characteristics of products and services to determine their potential use for money laundering and/or terrorism financing 
Conduct ML/TF risk assessment of products and services for organisation 
Collect and assess information about existing AML/CTF controls 
Determine appropriate enhancements to system controls for managing ML/TF risks for specific products and services 
Prepare recommendations for enhancing AML/CTF systems 
Review relevant products and services regularly and apply any changes to terms and conditions in daily work 
Establish and use systems for keeping up with changes and maintaining up-to-date knowledge about relevant products and services 
Review emerging trends affecting financial services industry and apply to product and service knowledge 
Analyse characteristics of products and services to determine their potential use for money laundering and/or terrorism financing 
Conduct ML/TF risk assessment of products and services for organisation 

Forms

Assessment Cover Sheet

FNSINC502 - Assess financial products and services vulnerability to money laundering and terrorism financing
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSINC502 - Assess financial products and services vulnerability to money laundering and terrorism financing

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: