AML/CFTR 3.5.1 Risk assessment for jurisdiction risk

(1) A firm must assess and document the risks of involvement in money laundering, terrorism financing and other illicit activities posed by the different types of jurisdictions with which its customers are (or may become) associated.

Examples of 'associated' jurisdictions for a customer
1 the jurisdiction where the customer lives or is incorporated or otherwise established
2 each jurisdiction where the customer conducts business or has assets
(2) The intensity of the CDD and ongoing monitoring conducted for customers associated with a particular jurisdiction must be proportionate to the perceived or potential level of risk posed by the jurisdiction.

Examples of jurisdictions requiring enhanced CDD
1 jurisdictions with ineffective AML/CFT regimes
2 jurisdictions with impaired international cooperation
3 jurisdictions subject to international sanctions
4 jurisdictions with high propensity for corruption
Derived by QFCRA RM/2019-8 (as from 1st February 2020)