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Risk profiling (The risk scoring system considers factors such as (Country…
Risk profiling
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It is common for the risk scoring system to force the total risk score of an entity to become high where certain risk factors are present such as
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A relationship involving a country that does not sufficiently apply the recommendations of an international standard setting body such as the FATF
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As part of CDD measures, the client acceptance procedures should include an assessment by the relevant person of the risk that any business relationship will involve money laundering
It is common for OSPs to use a risk scoring system to assist them to properly consider and assess the various risks posed by a customer entity
The systems used to assess risk vary from provider to provider and may purely be based upon scores where higher risk factors attract a higher score than lower risk factors that are present or they may contain an element of subjective review
The risk score is usually assessed at the time that the customer is accepted and on an ongoing basis at appropriate times, for example when a post take on or periodic review is undertaken or at other trigger events such as a change in the beneficial ownership of the entity, a change in the client's circumstances for example if they become a PEP