Helpful tips

What is AML CFT risk assessment?

What is AML CFT risk assessment?

The purpose of this Self-Assessment AML/CFT Anti-Money Laundering (AML) /Combating the Financing of Terrorism (CFT) Risk Management Questionnaire is to assist the SEC to assess the adequacy of your institution’s policies, procedures and internal controls for managing its ML/TF risk.

What is AML TF risk assessment?

ML/TF risk assessment is a process of assessing an organisation’s risk of, and vulnerabilities to, being used by money launderers and terrorist financiers.

What are the 3 main factors to consider in determining AML risk?

Inherent BSA/AML risk falls into three main categories: (1) products and services, (2) customers and entities, and (3) geographic location.

What should we consider when assessing the risk as part of the Anti-Money Laundering process?

In conducting a comprehensive risk assessment to evaluate ML/FT risks, a bank should consider all the relevant inherent and residual risk factors at the country, sectoral, bank and business relationship level, among others, in order to determine its risk profile and the appropriate level of mitigation to be applied.”

What is risk in AML?

Risk Assessment in Customer Onboarding Process Customer risk definition is a customer’s money laundering risk that depending on customer and company relationship. This risk can be defined as risk detection of the segmentation that risk perceptions of the customer’s profile.

What is customer risk in AML?

Customer Risk Factors According to Prevention of Money Laundering and Funding of Terrorism Regulation, “Risk factors include those relating to customers, countries or geographical areas, product, services, transactions, and delivery channels risk factors.”.

What is channel risk in AML?

Channel risk is determined by whether the delivery of a product or service involves face to face contact with the customer, as face to face contact limits the ability for customer anonymity and facilitates establishing whether the customer is who they are claiming to be.

What is TF in AML?

Risk management is the process of identifying risk and developing policies and processes to minimise and manage risk. Money laundering (ML) or terrorist financing (TF) risk is the risk that an organisation, or a product or service offered by an organisation, may be used to facilitate ML/TF.

What is a high risk customers AML?

Higher Risk Customers are those who are engaged in certain professions or avail the banking products and services where money laundering possibilities are high. Financial Institutions conduct enhanced due diligence (EDD) and ongoing monitoring for the higher risk customers.

What is geographic risk in AML?

The first is the idea of geographic risk: the vulnerability to money laundering threats that countries face at a national level. The second is the idea of individual risk, the specific risks that financial institutions face from their clients and how their internal AML process manages that risk.

What is smurfing in AML?

Smurfing is a money-laundering technique involving the structuring of large amounts of cash into multiple small transactions. Smurfing is a form of structuring, in which criminals use small, cumulative transactions to remain below financial reporting requirements.

What are the nature of AML / CFT risk assessments?

The reproduction or modification is prohibited. Jefferson JL CLARKE Law Enforcement Advisor CFATF Secretariat May 8, 2015 THE NATURE OF AML/CFT RISK ASSESSMENTS (Business & Customer) 1. Developing a AML/CFT risk methodology 2. Applying Risk Findings 3. Customer Due Diligence (Perspective Of The Financial Institutions)

What is the nature of a CFATF risk assessment?

Copyright -This document is the property of the CFATF Secretariat. The reproduction or modification is prohibited. Private Sector Risk Assessments The Risk Assessment The risk of exposure of a financial institution affect and expose the entire business. Therefore a global risk assessment is conducted in order to understand the

What are the advantages and disadvantages of AML?

AML measures commensurate with identified risk Reduce cost of AML Reflects national risks More focused Regulatory compliance *Rec. 10 Basis for Risk Assessment/Advantages for RBA Copyright -This document is the property of the CFATF Secretariat. The reproduction or modification is prohibited.

Is the CFATF customer Due Diligence document copyright?

Customer Due Diligence (Perspective Of The Financial Institutions) Copyright -This document is the property of the CFATF Secretariat. The reproduction or modification is prohibited. Private Sector Risk Assessments kelihood Impact High High Low Low