AML/CFTR 3.2.6 Legal persons, legal arrangements and facilities—risk assessment process

(1) A firm's risk assessment process must include a recognition of the risks posed by legal persons, legal arrangements and facilities.

Examples of legal persons
1 companies
2 partnerships
Example of legal arrangement

express trust

Examples of facilities
1 nominee shareholdings
2 powers of attorney
(2) In assessing the risks posed by a legal person or legal arrangement, a firm must ensure that the risk profile of the person or arrangement takes into account the risks posed by any beneficial owners, officers, shareholders, trustees, settlors, beneficiaries, managers and other relevant entities.
(3) In assessing the risks posed by a facility, a firm must ensure that the facility's risk profile takes into account the risks posed by any reduction in transparency, or any increased ability to conceal or obscure.
(4) Subrules (2) and (3) do not limit the matters to be reflected in the risk profile of a legal person, legal arrangement or facility.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)