Money Laundering Country Risk Rating Definition and Processes

In addition to assessing a customer’s name and address (country) against the OFAC and other sanctioned lists, the customer’s domicile needs to be assessed against country-specific money laundering risk ratings.

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Domicile – Entities:

  • Domicile of registration, and
  • Domicile of operations (if different from domicile of registration)

Domicile – Individuals:

  • Jurisdiction of residence
  • Jurisdiction of citizenship

The money laundering risk rating of every country needs to be included in the risk rating methodology used to assess the customer’s overall risk rating.

A domicile may have one of three country money laundering risks:

  • Normal country money laundering risk rating: the domicile has strong anti-money laundering regulations
  • Medium country money laundering risk rating: the domicile has some weaknesses in its anti-money laundering laws
  • High country money laundering risk rating: the domicile has low or non-existent anti-money laundering laws

See Also:

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Top 5 Robo-Advisors (Reviews)

Ranking of the Best Banks in the UK and the Biggest British Banks

Best Bank for Small Business Banking (Best Business Bank Accounts)

Top Banks in Canada – Ranking | Best High Interest Savings Accounts – Canada

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