Its time to update your Jurisdictional Risk Assessment!

It is that time again folks! It is time to review and update your Jurisdictional Risk Assessment based on a few changes since we spoke about on the subject back in July.

As you are aware, the jurisdictional risk assessment (JRA) relates to the identification and assessment of the financial crime risks to which an organisation is exposed to along with the products and services it offers, and the types of customer it attracts.

Jurisdictional risk assesses a countries vulnerability to ML/TF, Sanctions, and other criminal threats. Organisations periodically assess countries on an individual basis to determine the ML/TF risks that countries may expose them to. The size, complexity and geographical footprint of your organisation will determine the number of external criteria that should be used in assessing jurisdictional risk.

As you know here at Murray Waldren Consulting, we use the Know Your Country (KYC) JRA tool which is an external data source which scores country ratings using up to date information from FATF and other international agencies.

Since our update in July, the KYC JRA tool specifically highlights that Iceland has been placed on the FATF deficiency list. This means that they are placed on a “grey list” and Enhanced Customer Due Diligence (ECDD) procedures must be applied to proceed with any business decisions relating to that jurisdiction. There have also been some other changes in country scores, in particular:

  • Barbados has moved from Medium-High Risk to High Risk
  • Congo, the Democratic Republic has moved from High Risk to Medium-High Risk
  • Bolivia has moved from Medium-High Risk to Medium Risk
  • Macau has moved from Medium Risk to Medium – Low Risk
  • Gambia has moved from Medium Risk to Medium Low-Risk 
  • Equatorial Guinea has moved from Medium Risk to Medium Low Risk
  • Congo (Brazzaville)has moved from Medium Risk to Medium Low Risk
  • Croatia has moved from Low Risk to Lower – Medium Risk
  • Oman has moved from Lower – Medium Risk to Low Risk

Please make us aware if you are still using the old version of MWC’s Risk Assessment and we can provide you with an up to date version and any additional detailed information into certain countries regarding AML/CTF and Sanction related risks. Get in touch we are here to help! 😊

Please Login to Comment.