Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018
List of factors which suggest potentially higher risk | ||
39. The Act of 2010 is amended by the insertion of the following schedule after Schedule 3 (inserted by section 38 ): | ||
“SCHEDULE 4 | ||
Section 39 | ||
Non-exhaustive list of factors suggesting potentially higher risk | ||
(1) Customer risk factors: | ||
(a) the business relationship is conducted in unusual circumstances; | ||
(b) customers that are resident in geographical areas of higher risk as set out in subparagraph (3); | ||
(c) non-resident customers; | ||
(d) legal persons or arrangements that are personal asset-holding vehicles; | ||
(e) companies that have nominee shareholders or shares in bearer form; | ||
(f) businesses that are cash intensive; | ||
(g) the ownership structure of the company appears unusual or excessively complex given the nature of the company’s business. | ||
(2) Product, service, transaction or delivery channel risk factors: | ||
(a) private banking; | ||
(b) products or transactions that might favour anonymity; | ||
(c) non-face-to-face business relationships or transactions; | ||
(d) payment received from unknown or unassociated third parties; | ||
(e) new products and new business practices, including new delivery mechanism, and the use of new or developing technologies for both new and pre-existing products. | ||
(3) Geographical risk factors: | ||
(a) countries identified by credible sources, such as mutual evaluations, detailed assessment reports or published follow-up reports, as not having effective AML/CFT systems; | ||
(b) countries identified by credible sources as having significant levels of corruption or other criminal activity; | ||
(c) countries subject to sanctions, embargos or similar measures issued by organisations such as, for example, the European Union or the United Nations; | ||
(d) countries (or geographical areas) providing funding or support for terrorist activities, or that have designated terrorist organisations operating within their country.”. |