Section 11: AML/CTF Training
| No: 18318/486 | Date(g): 17/11/2019 | Date(h): 20/3/1441 |
Effective from 2019-11-17 - Nov 16 2019
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| The financial institution should allocate sufficient budget for training the senior management and employees to achieve the required efficiency in combating ML/TF. The training needs to be inspired by real experiences and should include the updates and new methods used in ML/TF transactions and the internal controls of the financial institution. The responsibility for determining the appropriate level and type of training rests with the financial institution as it has to ensure the ability of its employees to apply the risk-based approach. | ||
| Article (14/1) of the Implementing Regulations of the Anti-Money Laundering Law and Article (18) of the Implementing Regulations of the Law on Combating Terrorism Crimes and Financing state the obligations of the financial institution including providing ongoing employee training programs in the field of AML/CTF. | ||
11.1 | The financial institution should organize ongoing training programs for all employees to acquaint them with the regulations, instructions and updates in the field of AML/CTF in a way that enhances the efficiency of employees to identify these transactions and their typologies and know how to deal with them. These programs shall enable the employees to achieve a degree of knowledge sufficient to effectively reduce the occurrence of such crimes and combat them. In this regard, the financial institution should allocate sufficient budget to provide AML/CTF training. | |
| 11.2 | The financial institution should provide appropriate training to its employees, taking into account the level of their position and nature of work. The training programs should include the various position levels in the financial institution, including members of the board of directors and its committees, managers, and executives. In addition, the following shall be observed: | |
| a) | Training and education about the importance of AML/CTF policies and measures shall be provided for all current employees and new employees before they start work. Such training must be repeated to ensure that employees are continuously reminded of their responsibilities and informed of the updates and developments in this regard. | |
| b) | Providing more comprehensive and detailed training for employees responsible for implementing due diligence, in line with the risks to which the financial institution is exposed. | |
| c) | Specialized and adequate AML/CTF training should be provided for the AML/CTF compliance function employees as well as the independent audit function employees. | |
| d) | All employees, directors and board members of the financial institution should be made aware of their responsibilities and duties as well as the penalties that may be imposed in case of failure to comply with the relevant requirements, as stated in the Anti-Money Laundering Law, the Law on Combating Terrorism Crimes and Financing, their Implementing Regulations, and the instructions issued by SAMA and the authorities concerned. | |
| 11.3 | When seeking assistance from specialized institutes to provide training, the financial institution should take the following measures: | |
| a) | Verifying the suitability of the training offered for the AML/CTF requirements. | |
| b) | Ensuring that the training takes into account the nature of activities and the risks to which the financial institution is exposed. | |
| c) | Verifying the academic and work history of the trainer. | |
| d) | Polling the opinions of trainees on the suitability of the training materials and the style, experience and capabilities of the trainer in addition to analyzing the survey results after each training program to benefit from the trainees’ observations. | |
| 11.4 | The financial institution should conduct the necessary tests to assess the employees' knowledge of the AML/CTF requirements and the quality of training provided in this regard, provided that such assessment is carried out periodically (at least annually), taking into account the relevant modern requirements. | |
| 11.5 | The financial institution shall keep records that include documents of the AML/CTF training provided, attendance data, and the date of training. | |