AML/CFT Risk Assessment
In June 2017, the IV AML Directive came into force to follow upon FATF Recommendations published in 2012. In January 2020, it was supplemented with AMLD V that reinforced the framework and the governing principles even further. The main change introduced was to move from a systematic approach to combat money laundering to a risk based approach, (“RBA”), in order to ensure that resources are allocated were they are needed the most. FATF requires that each country carries-out on regular basis an identification of the AML/CFT risks it is facing and updates its regulatory frameworks accordingly. This includes requiring financial institutions and anyone subject to AML/CFT legislation to identify assess and take effective arrangement to mitigate their own AML/CFT risks.