4. Identification and Assessment of ML/FT Risks
Effective from 13/7/2023(AML-CFT Law Article 16.1; AML-CFT Decision Article 4.1)
Both the AML-CFT Law and the AML-CFT Decision provide that FIs may utilize a risk-based approach with respect to the identification and assessment of ML/FT risks.
FIs are obliged to assess and to understand the ML/FT risks to which they are exposed, and how they may be affected by those risks. Specifically, the AML-CFT Law provides that they shall:
| “…continuously assess, document, and update such assessment based on the various risk factors established in the Implementing Regulation of this Decree-Law and maintain a risk identification and assessment analysis with its supporting data to be provided to the Supervisory Authority upon request.” |
Furthermore, the AML-CFT Decision charges supervised institutions with:
| “…Documenting risk assessment operations, keeping them up to date on on-going bases and making them available upon request.” |
Guidance on these subjects is provided in the following sections.