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Evidence Guide: FNSAML802 - Design and assess controls to monitor money laundering and terrorism financing risk

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSAML802 - Design and assess controls to monitor money laundering and terrorism financing risk

What evidence can you provide to prove your understanding of each of the following citeria?

Analyse requirements and develop risk evaluation criteria

  1. Review all stages of the risk assessment process, including identification, assessment, evaluation, mitigation and monitoring, related to organisational requirements
  2. Analyse relevant industry related typologies including those issued by Australian Transaction Reports and Analysis Centre (AUSTRAC) annually
  3. Evaluate and select appropriate risk management tools for the organisation
  4. Develop risk criteria to evaluate risk appropriate to the organisation
  5. Formulate and document risk management methodology including assessing risk appetite and a holistic organisational money laundering and terrorism financing risk review process
Review all stages of the risk assessment process, including identification, assessment, evaluation, mitigation and monitoring, related to organisational requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse relevant industry related typologies including those issued by Australian Transaction Reports and Analysis Centre (AUSTRAC) annually

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluate and select appropriate risk management tools for the organisation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop risk criteria to evaluate risk appropriate to the organisation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Formulate and document risk management methodology including assessing risk appetite and a holistic organisational money laundering and terrorism financing risk review process

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess the organisation’s current exposure

  1. Analyse the organisation's operations, including products offered, clients, systems, channels of access and geographical sphere
  2. Analyse the vulnerability of the organisation to money laundering and terrorism financing risks
  3. Assess and evaluate the overall level of risk posed to the organisation ensuring the level is within the stated risk appetite tolerance
Analyse the organisation's operations, including products offered, clients, systems, channels of access and geographical sphere

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse the vulnerability of the organisation to money laundering and terrorism financing risks

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess and evaluate the overall level of risk posed to the organisation ensuring the level is within the stated risk appetite tolerance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Design and implement controls

  1. Evaluate risk mitigation controls already in place and assess if proportionate to the nature, size and complexity of the organisation
  2. Determine risks that have ineffective or insufficient controls
  3. Discuss risk management deficiencies with relevant stakeholders and identify controls required
  4. Allocate responsibility for managing the controls to senior managers within the organisation
  5. Work with stakeholders to implement controls where required
Evaluate risk mitigation controls already in place and assess if proportionate to the nature, size and complexity of the organisation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine risks that have ineffective or insufficient controls

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discuss risk management deficiencies with relevant stakeholders and identify controls required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Allocate responsibility for managing the controls to senior managers within the organisation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Work with stakeholders to implement controls where required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor and maintain the effectiveness of controls

  1. Review the organisation’s overall risk assessment addressing methodology, and changes within the organisation and to the legislative and regulatory landscape
  2. Implement processes to regularly monitor and assess the effectiveness of mitigation controls
  3. Analyse deficiencies and work with stakeholders to ensure remediation
  4. Report deficiencies to relevant stakeholders including management, the Board and the audit and risk manager
  5. Report significant breaches to relevant authorities including AUSTRAC
  6. Monitor the implementation of improvements and changes to mitigation controls
  7. Research and analyse changes to the industry and environment that may increase risk and necessitate changes to controls
Review the organisation’s overall risk assessment addressing methodology, and changes within the organisation and to the legislative and regulatory landscape

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement processes to regularly monitor and assess the effectiveness of mitigation controls

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse deficiencies and work with stakeholders to ensure remediation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Report deficiencies to relevant stakeholders including management, the Board and the audit and risk manager

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Report significant breaches to relevant authorities including AUSTRAC

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor the implementation of improvements and changes to mitigation controls

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Research and analyse changes to the industry and environment that may increase risk and necessitate changes to controls

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess the organisation’s current exposure

  1. Analyse the organisation's operations, including products offered, clients, systems, channels of access and geographical sphere
  2. Analyse the vulnerability of the organisation to money laundering and terrorism financing risks
  3. Assess and evaluate the overall level of risk posed to the organisation ensuring the level is within the stated risk appetite tolerance
Analyse the organisation's operations, including products offered, clients, systems, channels of access and geographical sphere

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse the vulnerability of the organisation to money laundering and terrorism financing risks

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess and evaluate the overall level of risk posed to the organisation ensuring the level is within the stated risk appetite tolerance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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

Required Skills and Knowledge

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.