Financial
Services:
Risk Assessment
What is a risk assessment?
A risk assessment is much more than just a few checks in a box.
It is a detailed examination of the effectiveness of your company’s processes, systems, or risks, followed by an assessment of how you could improve. The process gives independent assurance to a firm’s board on how well youer compliance function is performing.
Why does your firm need
a risk assessment
Prevention is better than cure
In the United Kingdom, it is mandatory that Regulated and Financial Service Businesses must use a risk-based approach to prevent
money laundering and TF from occurring. This involves following a number of steps.
Firms have to:
- carry out a risk assessment of their customers
- carry out a detailed risk assessment of their business, focusing on customer behaviour, delivery channels
- identify the money laundering risks that are relevant to their business
- design and put in place controls to manage and reduce the impact of risks
- monitor the controls and improve efficiency
- keep records of what was done and why it was done
- Proceeds of Crime Act 2002
- Terrorism Act 2006
- The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (referred to in this guidance as “the Regulations”)
- Criminal Finances Act 2017
- Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019, ISIL (Da’esh) and Al-Qaida (United Nations Sanctions) (EU Exit) Regulations 2019 and Counter-Terrorism (International Sanctions) (EU Exit) Regulations 2019)
- Sanctions and Anti-Money Laundering Act (2018)
- Anti-terrorism, Crime and Security Act 2001
- Counter-terrorism Act 2008, Schedule 7
How can Pro Legal help
The Law does not expect firms to be able to eliminate all risks, but they are expected to protect themselves, their users, their
network and the industy, as ‘soon as reasonably practicable”.
With our support, our clients are able to:
With our support, our clients are able to:
- carry out a risk assessment of their customers
- carry out a detailed risk assessment of their business, focusing on customer behaviour, delivery channels
- identify the money laundering risks that are relevant to their business
- design and put in place controls to manage and reduce the impact of risks
- monitor the controls and improve efficiency
- keep records of what was done and why it was done
We can also help with any remediation you may need.