Money laundering and terrorist financing risks

One of the key requirements of the FATF Recommendations is for countries, to identify, assess and understand the money laundering (ML) and terrorist financing (TF) risks that they are exposed to. Once these risks are properly understood, countries will be able to implement anti-money laundering and counter terrorist financing measures that mitigate these risks.

This approach, the risk-based approach, is central to the effective implementation of the FATF Standards and also applies to financial institutions and designated non-financial businesses and professions.

Many countries have chosen to publish information about the ML/TF risks to their financial system in the form of a national money laundering and terrorist financing risks assessment.  The publication of such a national risk assessment is not a mandatory requirement of the FATF Standards.  However, sharing this information will increase global understanding of ML/TF risk and may help countries identify, assess and understand where their own vulnerabilities lie.

Each country can determine how it will assess these risks. To assist countries in this process, the FATF has developed a guidance which explains the general principles and stages of a risk assessment. The practices described in the guidance serve as examples, and are not specific actions that a country must take. 

Regardless of the approach a country has chosen to identify, assess and understand the risk to its financial system, the FATF will assess the extent to which it has been able to do so during its peer reviews.  These reviews are based on the Methodology for assessing technical compliance with the FATF Recommendations and the Effectiveness of AML/CFT Systems and assessors will look closely at a country’s evaluation of its risks during the assessment of Recommendation 1 and Immediate Outcome 1.

The following are examples of published national and regional risk assessments:

National risk assessments

Armenia

 

National Assessment of Money Laundering and Terrorism Financing Risk in the Republic of Armenia - 2014

Australia

  Australia’s non-profit organisation sector: money laundering and terrorism financing risk assessment - 2017 Terrorism Financing in Australia - 2014
Money Laundering in Australia - 2011
Austria   Nationale Risikoanalyse Österreich - 2015 [in German only]

Bhutan

  National Money Laundering and Financing of Terrorism Risk Assessment - 2017
Canada

 

Assessment of Inherent Risks of Money Laundering and Terrorist Financing in Canada - July 2015
Tendances et analyse des risques en 2014 [in French only]

Cook Islands  

Cook Islands National Money-Laundering and Terrorism Financing Risk Assessment 2015

Denmark  

Money Laundering in Denmark - National Risk Assessment 2015

Fiji  

Fiji Money Laundering and Financing of Terrorism National Risk Assessment - 2014

Ghana  

National Risk Assessment on Money Laundering and Terrorist Financing

Ireland  

National Risk Assessment for Ireland - 2016

Isle of Man  

National Risk Assessment of Money Laundering and Financing of Terrorism - 2015

Jersey   Money Laundering Typologies and Trends - 2015
Japan   National Risk Assessment of Money Laundering and Terrorist Financing - 2014 [tentative translation]
Lithuania  

Lithuanian National Risk Assessment of Money Laundering and Terrorist Financing - 2015

New Zealand  

National Risk Assessment - 2010
Sector Risk Assessment - 2011
Sector Risk Assessment for Registered Banks, Non-Bank Deposit Takers and Live Insurers - 2017

Panama  

Evaluacion nacional de riesgos de blanqueo de capitales y financiamiento al terrorismo de Panama [in Spanish only]

Philippines  

National Risk Assessment on Money Laundering and Terrorism Financing - 2016

Portugal  

Avaliação nacional de riscos de branqueamento de capitais e de financiamento do terrorismo - 2015 [in Portuguese only]

Serbia

 

National Risk Assessment of Money Laundering in the Republic of Serbia

Singapore   Singapore National Money Laundering and Terrorist Financing Risk Assessment Report - 2013
Sri Lanka  

National Money Laundering and Terrorist Financing Risk Assessment of Sri Lanka 2014

Sweden  

Penningtvätt och anan penninghantering - 2015 (National Money Laundering Risk Assessment, in Swedish only)
Understanding Terrorist Finance, Modus Operandi and National CFT Regimes - 2015
Nationell riskbedömning penningtvätt - 2013 (National Money Laundering Risk Assessment, in Swedish only)
Nationell riskbedömning finansiering av terrorism - 2014 (National Terrorist Financing Risk Assessment, in Swedish only) 

Switzerland  

Rapport sur l’évaluation nationale des risques de blanchiment d’argent et de financement du terrorisme en Suisse - 2015
Bericht über die nationale Beurteilung der Geldwäschereiund Terrorismusfinanzierungsrisiken in der Schweiz
Report on the national evaluation of the risks of money laundering and terrorist financing in Switzerland - 2015

Tunisia   National Risk Assessment of Money Laundering and Terrorist Financing, Executive Summary - 2017
Ukraine   National Risk Assessment Report on Preventing and Countering Legalization (Laundering) of Proceeds of Crime and Financing of Terrorism - 2016
United Kingdom   UK National Risk Assessment of Money Laundering and Terrorist Financing – 2015 

United States  

National Money Laundering Risk Assessment - 2015
National Terrorist Financing Risk Assessment - 2015

Regional or supranational risk assessments

Regional risk assessment 2016 South-East Asia / Australia - co-led by Australia and Indonesia, with contributions from Malaysia, the Philippines, Singapore and Thailand.

EU Supranational Risk Assessment Report - 26 June 2017

European Supervisory Authorities (ESAs) Joint Opinion on the Risks of Money Laundering and Terrorist Financing Affecting the Union’s Financial Sector - 20 February 2017

 

 

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