AML/CFTR 3.3.1 Risk assessment for product risk

(1) A firm must assess and document the risks of money laundering, terrorism financing and other illicit activities posed by the types of products it offers (and proposes to offer).

Examples of types of products
1 savings accounts
2 e-money products
3 payable-through accounts
4 wire transfers
5 life insurance contracts
(2) The intensity of the CDD and ongoing monitoring conducted in relation to a particular type of product must be proportionate to the perceived or potential level of risk posed by the type of product.

Example

The level of deposits and the volume of transactions and operations that a customer has may affect the intensity of CDD and ongoing monitoring.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)