Country Risk Frequently Asked Questions (FAQs)

The revised FAQs provide a comprehensive understanding of the implications of country risk in the context of anti-money laundering (AML) and counter-terrorism financing (CTF) measures, including customer due diligence (CDD) requirements.

The updated document specifically highlights:

• Clearer delineation of country risk within the wider context of CDD and enhanced due diligence EDD;

• Criminal indicators, political and regulatory factors which should be considered when developing a methodology to evaluate country risk;

• Sanctions considerations and their impact in the context of AML/CTF country risk;

• The need for a strong governance enabling an unbiased approach towards country risk;

• Practical guidance combined with clear roles & responsibilities for financial institutions.

We hope that the FAQs will play a pivotal role in the industry’s challenges in assessing and effectively mitigating country risk in the respective institutional AML/CFT frameworks.