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SP5 The firm will establish and maintain effective training regimes for all of its officers and employees.
9 Training Requirements
The obligations in Section 10R of the Crime (Money Laundering and Proceeds) Act are expanded and clarified in the Notes.
The specific requirements in the Notes that refer to training are;
R2 b That appropriate training on money laundering is identified, designed, delivered and maintained to ensure that employees are aware of, and understand;
R2b.1 their legal and regulatory responsibilities and obligations;
R2b.2 their role in handling criminal property and terrorist financing;
R2b.3 the management of the money laundering and terrorist financing risk;
R2b.4 how to recognise money laundering and terrorist financing transactions or activities; and
R2b.5 the firm’s processes for making internal suspicious transaction reports.
R14 Where operational activities are undertaken by staff in other jurisdictions (for example, overseas call centres), those staff must be subject to the AML/CFT policies and procedures that are applicable to Gibraltar-based staff, and internal reporting procedures implemented to ensure that all suspicions relating to Gibraltar-related accounts, transactions or activities are reported to the nominated officer in Gibraltar. Service level agreements will need to cover the reporting of management information on money laundering prevention, and information on training, to the MLRO in Gibraltar.
It is clear from the above requirements that the training obligations on all firms is extensive both in depth and scope.
The requirement is that training be appropriate. This is to say, that one training programme will not be suitable for all levels of employees. New employees’ requirements will be different to those that have been with a firm for some time and are already aware of the firm’s processes. Similarly the appropriateness will be determined by the role played by that employee within the firm.
It is senior management’s responsibility to ensure that the training programme is maintained. Therefore, one-off training would not be appropriate to meet this requirement as this calls on a firm to have a regular process through which the training needs of staff are catered for.
The requirement also imposes an obligation on the firm the ensure that the staff “understand” the subject on which training has been provided and it is expected that training not be solely a passive exercise.
9.1 Legal and regulatory responsibilities and obligations
Training on the legal and regulatory responsibilities needs to include awareness training on the legislative provisions of the Crime (Money Laundering and Proceeds) Act, Drug Trafficking Offences Act, Terrorism Act and the UN Orders as well as the regulatory requirements of these Notes in so far as all of these are appropriate to the employees being trained.
9.2 Handling of criminal property and terrorist financing
Individuals need to receive training on their, as well as their employer’s, liability if found to be involved in money laundering or terrorist financing activities or if the obligations under the legislation or regulatory requirements are not met.
9.3 Risk Management
Staff are required to have an understanding of how a firm is managing the money laundering and terrorist financing threats and how risk management techniques have been applied at the firm.
9.4 Recognition
The front-line of defence in any AML/CFT scenario is the awareness and alertness of staff in recognising suspicious activity. Specific and appropriate training on money laundering and terrorist financing typologies must be provided to appropriate staff so that these may more readily detect suspicious activity.
9.5 Reporting
The firm’s internal reporting requirements must be understood by all staff so that if money laundering or terrorist financing is known or suspected a report to the MLRO can be lodged in an effective and efficient manner.
9.6 Overseas branches or subsidiaries
Training to these same standards must be delivered and maintained to all overseas branches or subsidiaries including providers of relevant outsourced functions.