Risk-Based Approach

The importance of a risk-based approach is to ensure that measures to prevent or mitigate money laundering and terrorist financing are commensurate to the risks identified. The Department of Finance and the Department of Justice & Equality have published a National Risk Assessment outlining the level of risk associated with a range of sectors including Trust or Company Service Providers, High Value Goods Dealers and Private Members' Clubs. To adopt a risk-risk based approach is to:


An effective risk-based approach will allow businesses/entities to exercise reasonable business judgement with respect to their customers. Set out below are a list of factors businesses/entities in the various sectors should take into account in pursuing a risk-based approach.

 

Risk-Based Approach (FATF)

The risk-based approach (RBA) is central to the effective implementation of the FATF Recommendations adopted in 2012.  

Between 2007 and 2009, in order to assist both public authorities and the private sector in applying a risk-based approach, the FATF has adopted a series of guidance in co-operation with relevant sectors.   The FATF is now in the process of reviewing its set of RBA guidance papers to bring it in line with the requirements of the revised FATF Recommendations, and to reflect the experience gained by public authorities and private sector over the years.  

 

*Please click on the Related Links section at the bottom of our website to access Reports published by the FATF on Risk-Based Approach.  

 

Risk factors for PMCs

Risk factors for HVGD

Risk factors for Tax Advisers and External Accountants

Risk factors for TCSP