Macao Banks Required to Upgrade Compliance Training as Regulators Clamp Down on Money Laundering
The Monetary Authority of Macao (AMCM) has introduced enhanced regulations for banks operating in the territory, requiring them to improve their Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) measures. This article explores the new standards and what they mean for Macao banks.
Key Requirements for Compliance Training
To meet these new standards, banks must provide compliance training for employees that meets the Enhanced Competency Framework (ECF) set by the Hong Kong Monetary Authority (HKMA). This includes equipping employees with AML/CFT knowledge to prevent money laundering and terrorist financing.
ECF on Anti-Money Laundering and Counter-Financing of Terrorism Macao (Core Level)
The ECF programme is designed to provide candidates with core competence in respect of AML/CFT required under the ECF. The training covers key areas, including:
- Fighting money laundering and terrorist financing
- Managing risk
- Customer due diligence
- Monitoring
- Sanctions compliance
- Suspicious transaction reporting
Training Outline Reveals Key Areas of Focus
The programme includes 24 hours of tuition, divided into several modules that provide a comprehensive understanding of AML/CFT. The training outline highlights the importance of establishing an effective ML/TF risk management framework and knowing your customer through customer due diligence.
Examination Structure Set to Test Candidates’ Knowledge
Candidates who complete the programme will be required to sit a multiple-choice examination, which will assess their understanding of AML/CFT principles. The passing mark is 70%, and candidates have 2.5 hours to complete the exam.
Financial Penalties for Non-Compliance
The AMCM has warned banks that failure to comply with the new regulations will result in financial penalties. Banks must therefore ensure that their employees receive adequate training and meet the required standards to avoid any potential fines or reputational damage.
In conclusion, the introduction of enhanced AML/CFT regulations by the AMCM has placed a significant burden on Macao banks to upgrade their compliance training. The ECF on Anti-Money Laundering and Counter-Financing of Terrorism Macao (Core Level) programme provides a crucial step towards meeting these new standards and ensuring that employees are equipped with the necessary knowledge to prevent money laundering and terrorist financing.