FINTRAC's Guideline 4: Implementation of a Compliance Regime comprehensively sets out the various responsibilities each reporting entity must do to meet its legislative obligations. One element of your compliance regime is the assessment and documentation of risks related to money laundering and terrorist financing in a manner that is appropriate to your business. This is in addition to your client identification, record keeping and reporting requirements.
What Is a Risk Assessment?
It is an analysis of the potential threats and vulnerabilities to money laundering and terrorist financing to which your business is exposed. The complexity of the assessment will depend on the size and risk factors of your business.
FINTRAC's Guideline 4 indicates that you have to document and consider the following factors in your assessment: (a) your products and services and the delivery channels through which you offer them; (b) the geographic locations where you conduct your activities and the geographic locations of your clients; (c) other relevant factors related to your business; and (d) your clients and the business relationships you have with them.
ABCsolutions have been helping companies assess money laundering risk and how to manage it, long before it was legislated in 2008. Since 2008 however, we have developed a money laundering risk matrix which is tailored to meet the specific needs of companies in different reporting sectors to help them assess their various products and services for the risks they may expose the company too.
Some of the key features include:
Each risk matrix is developed in consultation with the company's compliance official.
The risk matrix is customized to the client's service lines and customer base.
Content is presented in a user-friendly manner and reflects the requirements specific to each company's compliance needs.
The risk matrix has the potential to be uploaded to your data system and therefore is accessible by all authorized company personnel.
The risk score can be calculated for every account opening and the services and products used by your customers.
The risk assessment looks at not only your local head office and customers but also at your branch offices and/or agents if you have such locations.
The cost of developing a risk assessment matrix for your organization is negotiated at the time of the client's request.