Business Risk Assessment & Manuals (procedures)

Current laws and regulations on the prevention of money laundering and terrorist financing are based on the guiding principle of a Risk-Based Approach. This method aims to provide a better, less time-consuming and a more cost-effective alternative to the normative approach, enabling service providers to focus their resources more effectively on high-risk clients and therefore more efficiently meet compliance requirements. Consequently, service providers have more freedom when it comes to taking measures relevant to their business, depending on their risk assessment of a particular type of client, country, product or transaction.

Pursuant to the money-laundering legislation, a service provider must draft and approve a written risk assessment. This risk assessment should be detailed and based on their own organization, focusing on their own distinct clients/client groups, delivery channels, countries involved and all services and products provided. In the legislation, this is also referred to as Business Risk Assessment (BRA).

This risk assessment is used to describe how the risks are either eliminated or mitigated (the strategy).

Based on the risk assessment, the relevant procedures and measures are subsequently incorporated in a so-called Compliance Manual, aimed at preventing and combating money laundering and terrorist financing. These include the procedures which should be followed when identifying and verifying (potential) clients and reporting unusual transactions both within and outside the organization. The Compliance Manual also describes the responsibilities of the (Money Laundering) Compliance Officer and (where applicable) of the Money Laundering Reporting Officer.

Compliance Services Caribbean can assist your organization by drafting a Business Risk Assessment and a Compliance Manual. The Compliance Manual will be compiled in consultation with the service provider in such a way that it is customized to your organization while meeting the guiding principles of the applicable laws and regulations.

Do you require more information about this service? Please feel free to contact us at no cost for more information about these services.