The European Supervisory Authorities have published final guidelines that set out factors that firms should consider when assessing the money laundering and terrorist financing (ML / TF) risk associated with a business relationship or occasional transaction. They also set out how firms should adjust the extent of their customer due diligence measures in a way that is commensurate to the ML / TF risk they have identified.
The guidelines focus on risk assessments of individual business relationships and occasional transactions, but firms may use the guidelines mutatis mutandis when assessing ML / TF risk across their business in line with Article 8 of the Fourth Money Laundering Directive.
The factors and measures described in the guidelines are not exhaustive and firms should consider other factors and measures as appropriate.
Member State competent authorities will use the guidelines when assessing the adequacy of firms’ risk assessments and anti-money laundering and countering the financing of terrorism policies and procedures.
Compliance with the European financial sanctions regime is outside the scope of the guidelines.
The guidelines will apply by 26 June 2018.
View ESAs publish AML / CFT guidelines, 26 June 2017