![]() The RBA described in this guidance focuses on the inherent risks to your business, its activities and clients.Īn RBA is a way for you to conduct your risk assessment by considering elements of your business, clients and/or business relationships to identify the impact of possible ML/TF risks, and to apply controls and measures to mitigate these risks. When assessing risk, it is important to distinguish between inherent risk and residual risk. Footnote 2 Whereas residual risk is the level of risk that remains after you have implemented controls or mitigation measures. ![]() Inherent risk is the risk of an event or circumstance that exists before you implement controls or mitigation measures. In the ML/TF context, vulnerabilities could include weak business controls or high-risk products or services. Vulnerabilities: Elements of a business or its processes that are susceptible to harm and could be exploited by a threat. In the ML/TF context, threats could be criminals, third parties facilitating ML/TF, terrorists or terrorist groups or their funds. Threats: A person, group or object that could cause harm. For example, a possible ML/TF risk at the RE level could be conducting business with clients located in high-risk jurisdictions or locations of concern.
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