The United Nations Office on Drugs and Crime (UNODC) estimates 2-5% of global GDP is laundered globally in a year which is between $800 billion and $2 trillion. Anti-money laundering (AML) training is therefore crucial, teaching employees about how to identify, prevent and report money laundering and terrorist financing activities.
This type of compliance education applies to regulated sectors such as finance. For example, in the UK, training is mandatory for firms and individuals that fall under the Money Laundering Regulations (MLR) 2017.
Key takeaways
- Data privacy is an individual’s ability to control when, how and to what extent their personal info is collected, used and shared.
- Data security is about protecting digital information from unauthorised access, use, disclosure, corruption, theft, modification, destruction or loss.
- Data privacy and security also encompass related principles, guidelines, and technologies, plus regulatory compliance.
- Ensuring data privacy for anti-money laundering compliance training involves respecting and protecting employees’ personal info.
- Data security for AML compliance training focuses on protecting data and training records using methods such as encryption and access controls.
- Other steps centre on organisational best practices, the training content itself and compliance integration.
When it comes to AML compliance training, privacy and security are vital, because of the sensitive data involved. Regulatory, trust, confidentiality and cybersecurity considerations also come into play.
More on those topics below, including a data privacy and security best practices guide for anti-money laundering compliance training.
Best practices in data privacy and security for AML training
Best practices for ensuring your AML compliance training remains private and secure span several areas, including respecting employee data, protecting training records and organisational considerations.
- What is data privacy?
- What is data security?
- Why does data privacy and security matter?
- How can you ensure data privacy and security best practices for AML compliance training?
- Skillcast: data privacy and security
- Data privacy and security best practices for anti-money laundering training: FAQs
What is data privacy?
Data privacy refers to a person’s ability to determine and control when, how and to what extent their personal information is collected, used and shared. It also encompasses principles and guidelines to ensure the info is processed, managed and protected respectfully, securely and compliantly.
Key data privacy principles for individuals include:
- Personal info: Data that identifies you, such as name, email address, phone number, location and financial data.
- Control over personal data: The right to know what info is collected and have control over how it’s used, processed and shared.
- Consent: Giving informed and unambiguous permission for your data to be processed, which can be withdrawn at any time.
- Transparency: Being open and clear about what data they collect, why, and how they’ll use and share it.
- Purpose limitation: Collecting and using data for specified, explicit purposes, and not for unrelated reasons.
- Data minimisation: Limiting personal information to what’s necessary to fulfil a particular purpose, and keeping it only for as long as it’s needed.
- Security: Putting appropriate measures in place to protect data from unauthorised access, damage or loss.
- Compliance: Adhering to laws such as the General Data Protection Regulations GDPR (UK and EU).
- Accountability: Following the above and taking responsibility for data handling practices.
What is data security?
Data security refers to protecting digital info from unauthorised access, use, disclosure, corruption, theft, modification, destruction or loss. Doing that ensures the data’s confidentiality, accuracy and availability (the ‘CIA triad’) across its entire lifecycle.
The concept also involves ensuring information is only accessible to authorised individuals and systems. What’s involved? Technologies like access controls and encryption, policies such as incident response plans, and compliance with relevant regulations.
Why does data privacy and security matter?
They encourage and enable responsible data use and help protect people and businesses in the following ways:
- Individuals
- Confidentiality of personal information
- Safeguarding freedom and rights
- Preventing harm such as fraud and identity theft
- Companies
- Fostering and maintaining reputation and trust
- Legal and regulatory compliance
- Business and operational continuity
How is data privacy and security linked?
Data privacy = respecting how data is used Data security = keeping data safe |
How can you ensure data privacy and security for AML compliance training?
Our how-to guide outlines data privacy and security principles to keep in mind, whether you’re a small business or a large one.
Best practices for AML compliance: data privacy
The main thing to remember here? Respecting and protecting employee data and complying with relevant regulations. With that in mind, collect only what’s necessary, meaning limiting data to names, job titles and training records/statuses.
Let staff know how their data will be used, stored and retained, helping you stay transparent, and only keep training records for as long as required by the regulator. On top of that, follow applicable privacy rules and standards.
Finally, use access controls to restrict who can see AML training records and data – for example, only teachers and authorised staff.
Why do data privacy and data security matter in relation to AML training?Similar to any type of compliance training, privacy and security are important for AML for the following reasons:
Regulators expect evidence of AML training. If security is breached, records could be leaked; if data privacy fails, compliance could be compromised, and employee trust threatened. |
Data security considerations
This step involves focusing on protecting data and training records, including:
- Secure AML compliance training platform: Ensure your learning management system (LMS) has encrypted connections.
- Security features: These include encryption (at rest and in transit), access controls, authentication and a best-in-class data storage solution.
- Frequent monitoring and audits: Maintain data integrity via ongoing checks and regular reviews of logs and system security.
- Incident response plan: Create procedures in case employee data is accidentally exposed.
- Vendor due diligence: Using an external compliance training provider such as Skillcast? Check out our security certifications, including ISO 27001 and SOC 2.
Did you know?According to a 2024 IBM report, the average cost of a data breach is $4.88 million, with financial services businesses faring worse at $6.08 million. |
AML compliance training: organisational best practices
People and processes are the focal point here. For example, teach employees about privacy rights and obligations and ensure anyone handling training records is bound by confidentiality rules.
Training content focus points
When it comes to the training data privacy and security, use realistic, synthetic info (or anonymise and mask). Additionally, redact sensitive details if using real case studies.
Compliance integration
The final step is about ensuring AML compliance training materials adhere to:
- Relevant data protection laws, such as the GDPR
- Local anti-money laundering rules
- Internal corporate policies and procedures
Skillcast: data privacy and security
In terms of vendor due diligence, our ‘Trust and Security’ page outlines our commitment to data privacy and security. Furthermore, our ‘Trust Centre’ offers information about our security policies, compliance and audit reports.
We offer comprehensive anti-money laundering compliance training solutions, from ‘Anti-Money Laundering & Counter-Terrorist Financing’ to ‘Financial Crime’.
For small businesses, there’s our CoreCompliance plan, a “ready-to-use e-learning portal with over 150 courses and diagnostic assessments, and a simple dashboard to manage users and download reports”.
For more info about our data privacy and security policies and the AML compliance training we offer, contact our team directly.
When it comes to AML compliance training and data privacy and security, the goal is to teach employees effectively without exposing personal data unnecessarily. Use our best practices guide to ensure end-to-end data privacy and security.
Data privacy and security best practices for anti-money laundering training: FAQs
What is an anti-money laundering check?
As per Experian, AML checks “help prevent money laundering by confirming potential customers and businesses are who they say they are, and assessing how likely it is they’re involved in financial crime. For entities regulated by the Financial Conduct Authority (FCA), this due diligence is considered essential and is a legal requirement”.
What is anti-money laundering compliance?
Following AML laws, regulations and procedures to detect and stop suspicious and illicit money flows, including fraud and terrorist financing.
How is data privacy different from data security?
They’re closely related but differ: data privacy is all about how personal info is collected, used and shared, centring on policies, consent and ethical handling, whereas data security focuses on protecting information using technical measures.
What personal data is generally collected during AML compliance training?
Employee names, job roles, completion records and results.
How long is anti-money laundering compliance training data retained?
As long as needed for compliance evidence, depending on regulatory requirements and company policy. For example, as per the UK's Money Laundering Regulations and the Joint Money Laundering Steering Group (JMLSG), training data must be kept for at least five years.
Who is responsible for data privacy in AML compliance training?
Your organisation (the data controller), even if training is delivered through a third-party vendor (data processor) such as Skillcast.
Looking for more compliance insights?
Our Essentials Library contains e-learning content designed to help organisations meet fundamental compliance requirements. If you’re looking for focused training, our training packages offer a complete solution for your compliance programme.
Our e-learning courses are designed to engage employees with our microlearning library, which was created to support knowledge retention.
Our Compliance Portal also features a range of tools to digitise and automate your compliance learning. These include our:
- Learning Management System (LMS)
- Policy Hub
- Compliance Register
- Compliance Surveys
- Compliance Declarations
- AI Digital Assistant (Aida)
If you’d like to access leading insights and compliance tips, you can browse our free resources by topic to find guides, modules, compliance bites and more.
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References and further reading
- Experian, What is AML? Keeping Compliant With Anti-Money Laundering Checks
- GOV UK, ECSH33220 - Anti money laundering training
- GOV UK, Money Laundering Regulations 2017
- IBM, Cost of a data breach 2024: Financial industry
- ICO, Principle (c): Data minimisation
- Imperial College London, The CIA Principle
- JMLSG, Current Guidance
- KYC360, Anti-Money Laundering Regulations: A Comprehensive Guide
- Microsoft, ISO/IEC 27001:2022
- United Nations Office on Drugs and Crime, Money Laundering
Written by: Laura Evans
Laura is an experienced content writer with a history of creating well-researched, high-quality copy that informs and sparks curiosity. She’s also worked with instructional designers to develop scripts, microlearning units and learning content for various businesses. Laura has a degree in Economics and Politics from LSE, and in another lifetime, she had a decade-long career in finance at a hedge fund.
