IATI Diploma study guide
IATI Diploma · Work through your exam, one topic at a time.
The IATI Diploma is a professional qualification in anti-money laundering and counter-terrorist financing, aimed at practitioners who need working command of compliance rather than a purely academic overview. Candidates typically come from banks, payment and fintech firms, insurers, asset managers, law and accounting practices, and the compliance functions that support them. The IATI Diploma study guide has 8 sections and about 2,690 words.
01Anti-Money Laundering and Counter-Terrorist Financing Fundamentals
Money laundering is the process of disguising the origin of criminal proceeds so they appear legitimate. The classic three-stage model - placement, layering, integration - is the backbone of this domain.
357 words, about 2 min02International AML/CTF Standards and Frameworks
The Financial Action Task Force (FATF) sets the international standards - the Forty Recommendations - which are not treaties but are implemented through national law and peer assessment. Candidates must know the structure: the Recommendations cover AML/CTF policy coordination, money laundering and confiscation, terrorist financing and proliferation financing, preventive measures, transparency of beneficial ownership, powers of authorities, and international cooperation.
308 words, about 2 min03Risk Assessment and the Risk-Based Approach
The risk-based approach means calibrating controls to the level of risk rather than applying a uniform checklist. Candidates must understand inherent risk (before controls), residual risk (after controls), and the three risk drivers: customer, product/service, geography, and delivery channel - often called the four risk factors.
334 words, about 2 min04Customer Due Diligence and Know Your Customer
Customer due diligence is the foundation of every AML programme. Candidates must know the four elements: identifying the customer , verifying identity using reliable, independent sources , identifying the beneficial owner , and understanding the purpose and intended nature of the relationship .
346 words, about 2 min05Enhanced Due Diligence and High-Risk Relationships
Enhanced due diligence applies where risk is higher: politically exposed persons (PEPs) , customers in high-risk or grey/black-listed jurisdictions, correspondent banking relationships, private banking and high-value accounts, complex ownership structures, and products enabling anonymity. Know the PEP definition: individuals entrusted with prominent public functions - domestic, foreign, or international - plus their family members and close associates.
359 words, about 2 min06Transaction Monitoring and Suspicious Activity Reporting
Transaction monitoring is the ongoing surveillance of customer activity against expected behaviour. Candidates must understand scenario-based rules (thresholds, structuring patterns, rapid movement of funds, unusual geographies), behavioural analytics , and the role of customer risk profiles in setting expected activity.
340 words, about 2 min07Sanctions and Targeted Financial Sanctions Compliance
Sanctions compliance is distinct from AML: it is preventive and prohibition-based , not suspicion-based. Candidates must understand targeted financial sanctions (TFS) - asset freezes and prohibitions on making funds available to designated persons and entities - arising from UN Security Council resolutions and national/regional regimes (e.g., EU, UK, US OFAC).
335 words, about 2 min08Governance, Compliance Programme and Internal Controls
An effective AML/CTF programme rests on senior management commitment and a documented, risk-based framework. Candidates must know the core pillars: policies and procedures , designated compliance officer / MLRO , training , independent testing/audit , and customer due diligence and record-keeping .
311 words, about 2 min