AML/CFTR 3.2.1 Risk assessment for customer risk

(1) A firm must assess and document the risks of money laundering, terrorism financing and other illicit activities posed by different types of customers.

Examples of types of customers
1 salaried employees with no other significant sources of income or wealth
2 publicly listed companies
3 legal arrangements
4 PEPs
(2) The intensity of the CDD and ongoing monitoring conducted for a particular customer must be proportionate to the perceived or potential level of risk posed by the relationship with that customer.

Example

The duration of the relationship with the customer and the frequency of transactions may affect the intensity of CDD and ongoing monitoring.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)