KYC360º FAQ
What is Country Risk?
Country or geographic risk in relation to anti-money laundering and terrorist financing specifically relates to the levels of regulation and supervision, corruption, transparency, organised crime and / or terrorist activity within a country. Financial services need to be aware of the risks associated with someone who is either resident or conducting business in certain territories were there may be poor controls in place, high levels of corruption, known terrorist activity or issues with organised crime. The FATF state in their Guidance on the Risk-Based Approach, 2007
“Factors that may result in a determination that a country poses a higher risk include: • Countries subject to sanctions, embargoes or similar measures issued by, for example, the United Nations (“UN”). In addition, in some circumstances, countries subject to sanctions or measures similar to those issued by bodies such as the UN, but which may not be universally recognized, may be given credence by a financial institution because of the standing of the issuer and the nature of the measures. • Countries identified by credible sources as lacking appropriate AML/CFT laws, regulations and other measures. • Countries identified by credible sources as providing funding or support for terrorist activities that have designated terrorist organisations operating within them. • Countries identified by credible sources as having significant levels of corruption, or other criminal activity.”
Other Questions in the Anti-Money Laundering category
- What is Money Laundering?
- How is the offence of money laundering committed?
- Are all crimes capable of predicating money laundering?
- Can Fiscal Offences such as tax evasion predicate Money Laundering?
- Why is money laundering illegal?
- Is money laundering a serious offence?
- What is the Risk Based Approach?
- What is the origin of the Risk Based Approach?
- What is a PEP?
- What risk do PEP’s pose to my business?
