AML/CFTR 3.1.3 Risk profiling a business relationship

(1) In developing the risk profile of a business relationship with a customer, a firm must consider at least the following 4 risk elements in relation to the relationship:
(a) customer risk;
(b) product risk;
(c) interface risk;
(d) jurisdiction risk.
(2) The firm must identify any other risk elements that are relevant to the business relationship, especially because of the size, complexity and nature of its business and any business of its customer.
(3) The firm must also consider the risk elements (if any) identified under subrule (2) in relation to the business relationship.
(4) Together the 4 risk elements mentioned in subrule (1), and any other risk elements identified under subrule (2), combine to produce the risk profile of the business relationship.
(5) This risk profile must be taken into account in deciding the intensity of the CDD and ongoing monitoring to be conducted for the customer.

Note Each of the 4 risk elements mentioned in subrule (1) is dealt with in the following Parts of this Chapter.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)