Risk Rating List for Products and Services | Corporate-Wide AML KYC Risk Assessment
When developing their AML risk assessment and scoring methodologies, AML and Compliance officers across financial institutions generate lists of countries in which they operate and then apply risk categories to each of these countries.
Firms also need to analyze and determine the AML risk for every product and service that they provide.
Image Source: Pixabay
Below is a sample risk rating and assessment list for a wide range of products and services.
Although most firms use similar types of lists and come to similar risk assessments, please note that the below sample list is only being provided for illustrative purposes.
Sample Risk Rating Products and Services List – For Illustrative Purposes Only
|Financial Product and Service Types||Risk Rating Assessment|
|Agent Fund Trading||High Risk|
|Bank Loan Services||Medium Risk|
|Certificates of Deposit||Low Risk|
|Derivative Trading||High Risk|
|Distributor Services||High Risk|
|Enhanced Custody Products||Low–Medium Risk|
|Equity Trading||Medium Risk|
|Financial Management||Low Risk|
|Financial Planning||Low Risk|
|Foreign Exchange||High Risk|
|Fund Administration||Low Risk|
|Hedge Fund Administration||High Risk|
|Indirect Research and Advisory||Low Risk|
|Insurance Accounting||Low Risk|
|Investment Analytics||Low Risk|
|Investment Management Services||Low Risk|
|Life Insurance||Medium Risk|
|Long-Term Care Insurance||Low Risk|
|Money Market Funds||Low Risk|
|Mortgage Loan Modification Services||High Risk|
|Municipal Finance||Low Risk|
|Overdraft Protection||Low Risk|
|Payday Loans||High Risk|
|Portfolio Management||Medium Risk|
|Portfolio Solutions||Medium Risk|
|Real Estate Administration||High Risk|
|Refund Anticipation Loans (RALs)||Medium Risk|
|Rent-to-Own Financing||Low Risk|
|Retiree Services||Low Risk|
|Structured Products Administration||Low Risk|
|Student Loans||Medium Risk|
|Third-Party Lending||High Risk|
|Treasury Bills||Low Risk|
|Treasury Services||Medium Risk|
|Trustee Services||Medium Risk|
|Unit Investment Trusts||Low Risk|
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.