ESAs AML/CFT guidelines has been saved
AMLD IV (and its local implementation) puts the “Risk Based Approach” at the center of the AML/CFT regime, meaning that ML/FT risks can vary and that therefore firms should take the necessary steps to identify, assess and manage these risks.
The Risk Based Approach should be based on the results of a Business (or Enterprise) Wide Risk Assessment focusing on the products and services the firms offer, the jurisdictions they operate in, the customers they attract and the transaction or delivery channels they use to service their clients.
The result of this assessment, should be used by the firms to define the appropriate level and type of Customer Due Diligence applicable to their individual business relationships and occasional transactions. The Guidelines provide credit and financial institutions with the tools they need, to make informed, risk-based decisions on the effective management of individual business relationships and occasional transactions by providing them with:
- Guidance on the risk factors they should consider when assessing the ML/TF risk associated with a business relationship or occasional transaction.
- Guidance on how they can adjust the extent of their customer due diligence measures to mitigate the ML/TF risk they have identified.
The Guidelines provide general guidance applicable to all firms complemented by further sector specific guidance.
They should be implemented by 26 June 2018.