Anti-Money-Laundering (AML) and CFT for MFIs Training Course

Introduction

Money laundering and terrorist financing are persistent threats to the integrity of financial systems globally. Microfinance Institutions (MFIs), while serving as vital tools for financial inclusion, are increasingly exposed to risks associated with money laundering and terrorism financing due to their widespread reach and interaction with vulnerable populations. The Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) for MFIs Training Course is designed to strengthen institutional capacity in identifying, managing, and mitigating these financial crimes effectively.

This comprehensive training explores the legal, regulatory, and institutional frameworks governing AML and CFT compliance, with a focus on the unique operational realities of MFIs. Participants will gain a thorough understanding of global AML/CFT standards as established by the Financial Action Task Force (FATF), regional directives, and local regulatory requirements. The course will enable professionals to design and implement robust AML/CFT policies that ensure institutional compliance while maintaining the trust of clients and stakeholders.

Participants will engage in interactive sessions to examine typologies of money laundering and terrorism financing, including emerging risks in mobile money, agent banking, and digital financial services. Real-world case studies will illustrate how criminals exploit weaknesses in financial systems and how MFIs can proactively strengthen their internal controls and monitoring mechanisms to detect and deter suspicious activities.

The training emphasizes the role of technology, data analytics, and artificial intelligence in enhancing AML/CFT effectiveness. It introduces participants to advanced monitoring systems, transaction analysis tools, and digital identity verification technologies that help institutions detect red flags in real time. The course also explores the implications of emerging technologies such as cryptocurrency and blockchain on AML/CFT compliance.

In addition, the course builds participants’ practical skills in conducting customer due diligence (CDD), enhanced due diligence (EDD), and risk-based approaches to compliance. Participants will learn how to identify high-risk clients, assess transaction risks, and report suspicious activities effectively to Financial Intelligence Units (FIUs). It also addresses governance, accountability, and the responsibilities of boards and senior management in fostering a strong compliance culture.

Ultimately, this course equips MFIs and related financial service providers with the technical, analytical, and ethical capacity to combat financial crime effectively. By integrating robust AML/CFT practices, institutions not only protect themselves from legal and reputational risks but also contribute to the integrity, resilience, and sustainability of the global financial system.

Who Should Attend

• Compliance and risk management officers in MFIs
• Internal auditors and monitoring officers
• Finance and operations managers
• Legal and regulatory affairs professionals
• AML/CFT compliance officers and investigators
• Microfinance program managers and directors
• Financial inclusion and digital finance specialists
• Board members and senior executives of MFIs
• NGO and donor-funded financial program implementers
• Accountants and financial analysts
• Policy makers and regulators in the financial sector
• Law enforcement and FIU representatives

Duration

10 Days

Course Objectives

By the end of this training, participants will be able to:

• Understand the fundamental principles and international frameworks governing AML/CFT compliance.
• Identify typologies and patterns of money laundering and terrorism financing within microfinance operations.
• Apply a risk-based approach to AML/CFT compliance and develop tailored risk mitigation strategies.
• Conduct effective customer due diligence (CDD) and enhanced due diligence (EDD) for high-risk clients.
• Implement internal control systems and monitoring mechanisms to detect suspicious transactions.
• Design and operationalize institutional AML/CFT policies and procedures.
• Strengthen the role of governance and leadership in promoting a compliance culture.
• Leverage data analytics and technology tools for AML/CFT monitoring and reporting.
• Develop robust suspicious transaction reporting (STR) and record-keeping frameworks.
• Understand the role of FIUs and regulatory authorities in AML/CFT enforcement.
• Assess and manage emerging AML/CFT risks in digital and fintech ecosystems.
• Align institutional compliance frameworks with FATF recommendations and local regulatory standards.

Comprehensive Course Outline

Module 1: Introduction to AML and CFT Concepts

• Definition and significance of AML and CFT
• Evolution of global AML/CFT frameworks
• Key international bodies and conventions (FATF, UNODC, Egmont Group)
• AML/CFT obligations for MFIs and financial institutions

Module 2: Understanding the Money Laundering and Terrorism Financing Cycle

• Stages of money laundering: placement, layering, and integration
• Channels and methods used by criminals
• Typologies of terrorist financing in microfinance systems
• Case studies of real-world laundering and financing schemes

Module 3: AML/CFT Legal and Regulatory Frameworks

• FATF recommendations and compliance expectations
• Regional directives and domestic laws
• Institutional obligations under AML/CFT frameworks
• Penalties and sanctions for non-compliance

Module 4: Institutional AML/CFT Risk Assessment

• Risk identification and categorization
• Designing a risk-based compliance framework
• Assessing customer, product, and geographic risk
• Integrating risk assessment into operational strategy

Module 5: Customer Due Diligence (CDD) and Know Your Customer (KYC)

• Principles and procedures of CDD and KYC
• Enhanced due diligence (EDD) for high-risk clients
• Beneficial ownership and verification processes
• Simplified due diligence for low-risk customers

Module 6: Suspicious Transaction Monitoring and Reporting

• Identifying and analyzing suspicious activities
• Building STR and SAR reporting frameworks
• Collaboration with Financial Intelligence Units (FIUs)
• Confidentiality and legal protection for reporting entities

Module 7: Record Keeping and Documentation

• Legal requirements for record retention
• Documentation standards for AML/CFT audits
• Data management and privacy compliance
• Digital record-keeping in the age of fintech

Module 8: Role of Technology in AML/CFT Compliance

• AI and machine learning in transaction monitoring
• Big data analytics for AML pattern detection
• Blockchain and cryptocurrency compliance issues
• Emerging RegTech solutions for AML/CFT monitoring

Module 9: Internal Controls and Compliance Programs

• Designing an effective AML/CFT compliance program
• The role of internal audits in AML oversight
• Continuous monitoring and compliance improvement
• Accountability and governance structures

Module 10: Role of Senior Management and Board Oversight

• Governance responsibilities under AML/CFT frameworks
• Building a culture of compliance and ethics
• Communication and reporting to the board
• Training and awareness-building initiatives

Module 11: AML/CFT in Digital Financial Services and Fintech

• Risks associated with mobile money and agent networks
• Managing anonymity and digital identity risks
• AML/CFT implications for e-wallets and remittance platforms
• Adapting compliance to new financial technologies

Module 12: Cross-Border Transactions and International Cooperation

• AML/CFT compliance in cross-border remittances
• International data sharing and cooperation frameworks
• Challenges in multi-jurisdictional compliance
• Best practices for correspondent banking relationships

Module 13: The Role of Financial Intelligence Units (FIUs)

• Structure and functions of FIUs
• Information sharing and collaboration mechanisms
• How FIUs analyze and act on STRs
• Practical coordination between MFIs and FIUs

Module 14: Investigations and Enforcement Mechanisms

• Conducting internal AML/CFT investigations
• Evidence collection and reporting procedures
• Coordination with regulators and law enforcement
• Case studies of enforcement actions and outcomes

Module 15: Emerging Issues and Global AML/CFT Trends

• Cryptocurrencies and decentralized finance risks
• Trade-based money laundering
• Sanctions compliance and geopolitical risks
• ESG and ethics in financial compliance frameworks

Module 16: Building Sustainable AML/CFT Frameworks for MFIs

• Institutionalizing compliance through policy integration
• Continuous training and performance evaluation
• Linking AML/CFT to corporate strategy and social goals
• Developing a roadmap for ongoing compliance improvement

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: training@upskilldevelopment.com Tel: +254 721 331 808

Training Venue

The training will be held at our Upskill Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Upskill certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: training@upskilldevelopment.com, +254 721 331 808

Terms of Payment

Unless otherwise agreed between the two parties’ payment of the course fee should be done 3 working days before commencement of the training so as to enable us to prepare better.