6.1 AML/CFT Framework

Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) are critical regulatory requirements for treasury operations. The ACT Diploma covers “the anti-money laundering and know your client responsibilities of treasury” as a core topic . Key elements include:

• Customer Due Diligence (CDD): Verifying the identity of customers and understanding the nature of their business.

• Transaction Monitoring: Detecting and reporting suspicious transactions.

• Sanctions Screening: Screening customers and transactions against sanctions lists.

6.2 KYC Responsibilities

Know Your Customer (KYC) is the process of identifying and verifying customer identity. Treasury professionals must ensure that counterparties are properly identified and that the organisation complies with KYC requirements . This is particularly important for:

• Counterparty Relationships: Banks, financial institutions, and other counterparties.

• Investor and Lender Relationships: Institutional investors and lenders.

• Intercompany Transactions: Related parties within the corporate group.

6.3 Sanctions and Regulatory Reporting

Treasury must comply with international sanctions regimes and regulatory reporting requirements. This includes screening against sanctions lists, filing suspicious activity reports, and maintaining accurate records for regulatory review .