Financial Crime World

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Regulated Entity’s Risk Profile: A Holistic Approach

As a regulated entity operating in [Jurisdiction], we are committed to providing transparency and cooperation during our application and licensing process, as well as in submitting regular reports and returns. Our risk profile is developed through a comprehensive assessment of Money Laundering (ML), Terrorist Financing (TF), and Proliferation Financing (PF) risks.

Understanding the Risk Profile

Our risk profile is built by leveraging information from our AML/CFT/CPF risk assessments, which flows back into our overall risk assessment. We have adequate knowledge, awareness, and understanding of ML/TF/PF risks where we have significant links with other jurisdictions, particularly those with strategic deficiencies in their AML/CFT/CPF regimes.

Group Structure

As part of a group, we understand the importance of having a clear understanding of our group structure, including whether we are foreign or locally owned and controlled. We know:

  • The number and location of subsidiaries and branches in other jurisdictions
  • The ownership structure of our parent and subsidiaries
  • This information is crucial in developing our risk profile

Sectoral Risk Assessment

We also conduct regular sectoral risk assessments to identify ML/TF/PF risks that are relevant to all sectors under supervision. These assessments provide an overall view of the risks to which our sector is exposed, as well as the impact of these risks on each regulated entity in the sector.

Group-Level Risk Assessment

Our group-level risk assessment takes into account all relevant domestic and foreign risk factors. We pay particular attention to risks associated with:

  • Cross-border operations
  • Business activities of branches and subsidiaries in other jurisdictions

Jurisdictional Risks

We assess ML/TF/PF risks arising from exposure to jurisdictions that:

  • Have strategic deficiencies in their AML/CFT/CPF regime
  • Prohibit group-wide policies and procedures
  • Are exposed to high levels of corruption or other predicate offenses to ML
  • Have terrorist organizations operating within them, subject to economic financial sanctions, embargoes, or measures related to ML/TF/PF
  • Have serious concerns raised about the effectiveness and quality of their AML/CFT/CPF controls

Information Exchange

We cooperate and exchange relevant information with other stakeholders, including:

  • Prudential supervisors
  • Financial intelligence units
  • Tax authorities
  • Law enforcement agencies
  • Judicial authorities
  • AML/CFT/CPF supervisors from other jurisdictions

This cooperation ensures we receive comprehensive information to obtain a clear understanding of our regulated entity and ensure effective supervision.

Cooperation and Information Exchange

The extent and objective of our cooperation with other stakeholders are considered on a case-by-case basis, taking into account the most effective approach for each situation. We prioritize more frequent cooperation with competent authorities and prudential supervisors involved in supervising the same regulated entity.

By adopting this holistic approach to risk assessment, we demonstrate our commitment to transparency and cooperation during our application and licensing process, as well as in submitting regular reports and returns. Our goal is to ensure effective AML/CFT/CPF supervision and mitigate ML/TF/PF risks within our organization.