Risk-Based Approach
This means that countries, state authorities, and the private sector should understand the ML/TF risks to which they are exposed and apply AML/CFT measures in a manner that would ensure the mitigation of these risks. The set of AML/CFT measures formulated by the FATF must be based on understanding ML/TF risks already in the 2003 […]
Risk Assessment
AML risk assessment is a thorough, systematic process designed to detect, evaluate, and mitigate money laundering risks and terrorist financing linked to a business relationship. This includes identifying and assessing critical risk factors to consider the AML risk exposure of a specific organisation and enabling the given organisation to identify a customer with a higher […]
Risk appetite and risk tolerance
Risk appetite is the total risk the organisation can bear in a given risk profile, usually expressed in aggregate. In contrast, risk tolerance is the level of risk that an organisation can accept per individual risk; risk tolerance is related to the acceptance of the outcomes of risk should they occur and having the right […]
Real-Time Payments Screening for Sanctions
Payment screening plays a vital role in enforcing the application of sanctions regimes. Screening is a regulatory requirement to prevent transactions linked to sanctioned parties from being processed.
Register, Corporate
A corporate register is a listing of crucial information about the company, such as when a corporation was formed and who its owners and directors are. Corporate (or company) registers are often publicly available on the company’s website or websites maintained by professional associations or entities, such as chambers of commerce and government registry databases.
Red Flag
A warning signal should bring attention to a potentially suspicious situation, transaction or activity.