The Complete AML & KYC Compliance Masterclass

This lesson introduces the concept of money laundering in simple, visual terms. You'll learn how criminals use financial systems to make illicit money appear legitimate, and why this poses a serious threat to the global economy.

We’ll explore how money laundering works, common techniques used to disguise illegal funds, and how it connects to broader financial crimes. Key terms like placement, layering, and integration, along with real-world consequences, help build a foundational understanding of AML (Anti-Money Laundering).

This lesson breaks down the three core stages of money laundering: placement, layering, and integration. Using clear visuals and simple examples, we follow the journey of illicit funds as they move through the financial system.

You'll understand how to identify red flags at each stage and why these steps are central to AML detection. The lesson reinforces key compliance concepts such as structuring (smurfing), transaction layering, and fund integration, making it essential for AML professionals and trainees alike.

In this hands-on simulation, you'll play the role of a bank teller facing a series of small, suspicious cash deposits. Your task is to spot signs of placement and decide whether to escalate for AML review.

You’ll practice identifying structuring behaviors (smurfing), asking tactful questions, and applying early-stage AML risk judgment — a critical skill for onboarding and front-line teams.

Unlike money laundering, terrorist financing often involves clean money being used for criminal purposes. This lesson explores how funds are raised and moved to support terrorist activities, and how intent—not just source—defines risk.

We’ll compare terrorist financing vs money laundering, highlight legal sources with hidden intent, and explain why this poses a unique challenge to compliance teams. You'll also learn about CFT (Counter Financing of Terrorism) and how it complements AML strategies.

This lesson clarifies the difference between AML (Anti-Money Laundering) and CFT (Combating the Financing of Terrorism). Though closely related, they target different types of criminal activity and require different risk assessments.

You’ll explore how both frameworks share tools like KYC, transaction monitoring, and SARs, but differ in focus — AML looks at the source of funds, while CFT looks at how funds will be used. Understanding this distinction is crucial for compliance accuracy and enforcement.

Explore major real-world scandals that exposed AML failures and led to stronger regulations. This lesson walks through the HSBC cartel case, Danske Bank’s $200 billion laundering trail, and the explosive FinCEN Files leak.

These case studies reveal how gaps in compliance, customer due diligence, and transaction monitoring allowed large-scale financial crime. You'll see why AML enforcement, global cooperation, and transparency have become non-negotiable in modern finance.

This lesson introduces the Financial Action Task Force (FATF) and its 40 Recommendations — the global standard for anti-money laundering and counter-terrorism financing. You’ll learn how these recommendations are structured and why they guide AML laws worldwide.

We break down the seven groups of FATF recommendations covering customer due diligence, beneficial ownership, supervision, sanctions, and international cooperation. This framework is essential knowledge for any compliance or financial professional.

While FATF sets the global standards, national regulators ensure those standards are enforced. This lesson explores key AML regulators across the U.S., UK, Australia, Canada, India, Singapore, and the EU.

You’ll understand how agencies like FinCEN, FCA, and AUSTRAC issue guidelines, supervise financial institutions, and collect suspicious activity reports (SARs). We also compare roles of FIUs (Financial Intelligence Units) across jurisdictions.

An effective AML program is built on five core pillars: Internal Controls, a designated Compliance Officer, Ongoing Training, Independent Testing, and Customer Due Diligence (CDD). This lesson breaks down each pillar with clear visuals and practical examples.

You’ll learn how these pillars align with regulatory expectations and how to build a strong, auditable AML framework using tools like training logs, policy documents, and risk-based CDD procedures.

This lesson explains how financial institutions use a Risk-Based Approach (RBA) to prioritize higher-risk customers and transactions. You’ll learn how to assign risk ratings, trigger Enhanced Due Diligence (EDD), and adjust controls as customer behavior changes.

With a real-world case comparison of low-risk vs high-risk customers, this lesson helps you apply RBA principles using tools like risk matrices, red flag detection, and profile-based monitoring.

A UBO is the real person who ultimately owns or controls a legal entity — even if hidden behind layers of companies or trusts. This lesson explains how UBOs are identified globally, with thresholds and definitions from FATF.

You’ll see why beneficial ownership transparency is critical for AML compliance, how to detect hidden structures, and why UBOs are often subject to sanctions screening and enhanced due diligence.

In the UK, companies must disclose their PSCs — individuals with significant ownership or control — in public records like Companies House. This lesson explains who qualifies as a PSC, how it’s different from a UBO, and why it’s legally required.

You’ll explore PSC criteria, registry obligations, and AML red flags tied to non-compliance. The comparison with UBOs helps clarify when deeper KYB checks are needed to uncover the real decision-makers behind a company.

This lesson introduces the concept of KYC (Know Your Customer) and explains why it’s a legal and regulatory requirement for financial institutions. You’ll learn how KYC helps prevent money laundering, fraud, and terrorist financing by verifying customer identities and assessing their risk profiles.

We’ll also explore how modern KYC processes work — including document verification, customer onboarding, and name screening — and how tools like OCR, facial recognition, and global watchlist databases are used to streamline identity checks and ensure AML compliance.

This lesson explores the difference between real-time and batch transaction monitoring in anti-money laundering (AML) systems. Learn how financial institutions use real-time alerts for instant fraud detection and batch reviews for identifying complex suspicious patterns.

In this lesson, you'll learn what AML typologies are and why they’re critical in identifying financial crime. We’ll explore common money laundering patterns such as structuring (smurfing), trade-based money laundering (TBML), shell companies, casino laundering, and more. Through real-world examples, you'll discover how these methods are used to disguise the origin of illicit funds—and prepare for a quiz that puts your knowledge to the test.