Supra-national risk assessment

The European Commission has published a report on the supra-national risk assessment of the risks of money laundering and terrorist financing affecting the internal market and relating to cross-border activities.

The Commission has identified 40 products or services that are considered potentially vulnerable to ML/TF risks affecting the internal market. These cover 11 professional sectors, including all those defined by the MLD 4, along with some not included in the scope of the Directive but considered relevant for the supra-national risk assessment.

The full report can be read here.

Joint Committee guidelines

The Joint Committee of the European Supervisory Authorities has published final guidelines under the MLD 4 on simplified and enhanced customer due diligence and the factors credit and financial institutions should consider when assessing the money laundering and terrorist financing risk associated with individual business relationships and occasional transactions.

These guidelines are divided into two parts:

  • A general section which applies to all firms. This is designed to equip firms with the tools they need to make informed, risk-based decisions when identifying, assessing and managing the ML/TF risk associated with individual business relationships or occasional transactions.
  • A section which is sector-specific and complements the general guidance. This sets out risk factors that are of particular importance in certain sectors and provides guidance on the risk-sensitive application of customer due diligence measures by firms in those sectors.

The guidelines will apply from 26 June 2018 and can be read here.