Regulation 21 AML Audits - Establishing an Effective Independent Audit Function

Introduction

Regulation 21 of the Money Laundering Regulations 2017 requires regulated businesses, where appropriate to their size and nature, to establish an independent audit function.

Although the requirement is well established, important practical questions remain.

Does your organisation require an independent audit function? Can the audit be conducted internally? What constitutes genuine independence, and how should the function be governed?

Businesses that decide an independent audit function is unnecessary must be able to justify and evidence that decision. Where one is established, it must have sufficient authority and resources to examine the effectiveness of the organisation’s AML controls, make recommendations and monitor the response.

This new virtual classroom seminar will explain how to establish, govern and maintain an effective and defensible Regulation 21 audit function.

It is ideal for MLROs, AML compliance officers, heads of compliance, risk professionals, senior managers and anyone responsible for appointing, conducting or overseeing an independent AML audit within a regulated business.

What You Will Learn

This live and interactive session will cover the following:

• Which regulated businesses are subject to Regulation 21?
• When is an independent audit function required?
• How should the ‘size and nature’ test be applied?
• How should a decision that an audit function is unnecessary be evidenced?
• What does independence mean in practice?
• Can an employee or compliance professional conduct the audit?
• When should an external auditor be appointed?
• What skills, authority and resources should the auditor have?
• How should the scope and terms of reference be established?
• To whom should the auditor report?
• What should the audit report contain?
• How should recommendations be implemented and monitored?
• How frequently should the audit be conducted?
• When should the organisation reconsider its audit arrangements?

The content of this session may be amended to ensure that the most recent legislative, regulatory, risk and enforcement developments available at the date of delivery are covered.

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.