Products, Services, Delivery Channels and Geographic Locations
The following checklist is intended to provide an example of how to assess risk for your products, services, delivery channels and geographic locations. This is only a starting point and you should customize the checklist for your business. Your risk assessment tool has to be appropriate for your specific business needs which means that it may have to be more detailed than this checklist for larger reporting entities, or entities who conduct large volumes of business. If you already use another risk assessment tool, you can continue to use it or enhance it as necessary.
If you answer yes to any of the questions below, you should consider it as higher risk for money laundering or terrorist financing. Where appropriate, risk-mitigation steps should be taken. You can also refer the Financial Action Task Force’s Web site (http://www.fatf-gafi.org) for further guidance on risk-based approach.
|Identify whether you provide any of the following products, services or delivery channels
|For all sectors
|Do you offer services that make it difficult to fully identify clients?
|Do you offer electronic funds payment services?
Do you offer any of the following:
|For financial entities
|Do you offer any of the following:
|Identify whether you deal with clients or provide products or services in the following geographic locations:
|For all sectors
|Is the client located in a known high crime rate area?
|Do you or your clients operate or undertake activities in the following countries:
Credible sources means information that is produced by well-known bodies that generally are regarded as reputable and that make such information publicly and widely available. Such sources may include, but are not limited to, supra-national or international bodies such as the World Bank, the International Monetary Fund, the Organization for Economic Co-operation and Development, and Transparency International as well as relevant national government bodies and non-governmental organizations.