Insights

AML: Designing an effective Customer Risk Assessment and Jurisdictional Risk Assessment

6 October 2021 at 1600 hrs

Jurisdictional risk assessments and customer risk assessments are two pillars of a robust AML-CFT framework.

Jurisdictional exposure plays a crucial role in building an organisation’s risk profile (through the business risk assessment) and the customer risk profile. The type of factors to be taken into account in order to assess jurisdictional risk will impact the final risk rating of that jurisdiction. However, rating jurisdictions from an ML/FT risk perspective is not always enough. In certain instances, organisations need to analyse, at a more granular level, the underlying risks of such jurisdictions and build their control framework taking into account such risks.

In addition, understanding and assessing customer risk is also key to ensuring that the risk-based approach is implemented in the correct manner. In designing the customer risk assessment, organisations need to take into account, amongst other matters, the nature of the relationship with the customer as well as the industry in which the organisation operates. There is no one size fits all, and customer risk assessments should be tailored to the organisation’s business.

To properly implement the risk-based approach, organisations must start by designing effective jurisdictional and customer risk assessments. During the course of this webinar, we will be discussing the factors which are to be taken into account when designing and implementing jurisdictional and customer risk assessment methodologies.

Moderator
Stephanie Farrugia, Senior Associate

Participants
André Zerafa, Managing Partner
James Farrugia, Partner
Mario Zerafa, Senior Associate

Registration
Participation is free of charge upon registration.