To aid your Compliance programme, why not create a Geographical rating system?
Using the simple excel spreadsheet, you can weight the risk ratings to suit your
business compliance requirements. Please read below before opening the
spreadsheet.
Will the Regulator approve?
KnowYourCountry is not regulated - we're just trying to make your life a little bit
easier. However, the fact that you will have created a geographical anti-money
laundering ratings system, together with your access to our 218 country reports,
and other relevant news, would certainly be better than having nothing to show him
when he visits. .And if you are already using one, then there's no harm in keeping
another that has been weighted especially for your type of business and location.
Especially as the whole service we provide is free.
How does it work?
The actual spreadsheet is very simple to use. Once you have decided upon your weightings, just fill in the numbers in the columns to the right of
the ratings (rows 2-5), and the rating scores should appear in the column closest to the country names. Once you've determined your rating
scores, it shouldn't take longer than a few minutes to complete the spreadsheet. You can insert your reasoning behind your weightings in the
comment boxes next to the ratings. Just click the Review tab, then click on the cell with the little red triangle, click on Edit Comment (on the blue
ribbon above) and type.
How do you weight the ratings?
In the example, I have decided on a rating system of 1 - 100 (the combined total of maximum scores is 100). Each of the areas of concern has
been scored depending on the risk - i.e. High - 5, Medium 3, Info unavailable - 3, Low - 1. I have scored the INCRS comparatives table 0.5 for
each negative or unknown - making 8 in all. The final column, 'Local Blacklists/Sanctions/Issues' can be used to weight-up the ratings - entries
are made manually (e.g. US users would probably use this to weight-up the rating for Cuba).
You will see at the top of the spreadsheet (next to the red alert cells) that I have inserted very general scoring ratings, which you would probably
never agree to, but that's the point, wherever you are and whatever you do, will determine the weighting of your system. For instance, if your are
located in the US, I would expect you to weight more heavily on the US government lists - and downgrade the EU equivalent jurisdiction list. You
can even override the formulas to bring a score to 100 if you so wished.
For me, the most difficult area to weight is sanctions. Some sanctions are very limited but adopted by the UN, whereas the embargo in force for
Cuba, for example, although limited to one country, the US, is almost total. Therefore I have just rated High, Medium, Low and None Known -
and any adjustments that you wish to make can be done manually through the 'Local Blacklists' column..
*You can find the above information in the Spreadsheet - just drag the mouse over the little red triangle in the cell marked 'Rating System
Example'.
How do I sort the data (i.e. Smallest score to largest score)?
Unfortunately, because I'm using colour codes and letters in the spreadsheet, the sorting function does not work. Therefore, in order to sort, i.e.
from lowest score to highest, when you have completed the spreadsheet, just go to the 'Sorting' worksheet (tab at the bottom) - then you can
use the Sort functions. Scores are brought through automatically from the main spreadsheet.
Once you have the score ratings sorted, you can determine risk ratings - the parameters are completely up to you.
*You can find further information in the Spreadsheet - just drag the mouse over the little red triangle in the cell marked 'How does this work?'.
How do you keep the Spreadsheet updated?
The spreadsheet will be updated as and when changes occur - just check our Updates page for further information.
This is a working document so expect to see some tweaks from time to time. Any thoughts, comments, notification of errors etc. are much
appreciated. Just visit the Contact page.
Using the simple excel spreadsheet, you can weight the risk ratings to suit your
business compliance requirements. Please read below before opening the
spreadsheet.
Will the Regulator approve?
KnowYourCountry is not regulated - we're just trying to make your life a little bit
easier. However, the fact that you will have created a geographical anti-money
laundering ratings system, together with your access to our 218 country reports,
and other relevant news, would certainly be better than having nothing to show him
when he visits. .And if you are already using one, then there's no harm in keeping
another that has been weighted especially for your type of business and location.
Especially as the whole service we provide is free.
How does it work?
The actual spreadsheet is very simple to use. Once you have decided upon your weightings, just fill in the numbers in the columns to the right of
the ratings (rows 2-5), and the rating scores should appear in the column closest to the country names. Once you've determined your rating
scores, it shouldn't take longer than a few minutes to complete the spreadsheet. You can insert your reasoning behind your weightings in the
comment boxes next to the ratings. Just click the Review tab, then click on the cell with the little red triangle, click on Edit Comment (on the blue
ribbon above) and type.
How do you weight the ratings?
In the example, I have decided on a rating system of 1 - 100 (the combined total of maximum scores is 100). Each of the areas of concern has
been scored depending on the risk - i.e. High - 5, Medium 3, Info unavailable - 3, Low - 1. I have scored the INCRS comparatives table 0.5 for
each negative or unknown - making 8 in all. The final column, 'Local Blacklists/Sanctions/Issues' can be used to weight-up the ratings - entries
are made manually (e.g. US users would probably use this to weight-up the rating for Cuba).
You will see at the top of the spreadsheet (next to the red alert cells) that I have inserted very general scoring ratings, which you would probably
never agree to, but that's the point, wherever you are and whatever you do, will determine the weighting of your system. For instance, if your are
located in the US, I would expect you to weight more heavily on the US government lists - and downgrade the EU equivalent jurisdiction list. You
can even override the formulas to bring a score to 100 if you so wished.
For me, the most difficult area to weight is sanctions. Some sanctions are very limited but adopted by the UN, whereas the embargo in force for
Cuba, for example, although limited to one country, the US, is almost total. Therefore I have just rated High, Medium, Low and None Known -
and any adjustments that you wish to make can be done manually through the 'Local Blacklists' column..
*You can find the above information in the Spreadsheet - just drag the mouse over the little red triangle in the cell marked 'Rating System
Example'.
How do I sort the data (i.e. Smallest score to largest score)?
Unfortunately, because I'm using colour codes and letters in the spreadsheet, the sorting function does not work. Therefore, in order to sort, i.e.
from lowest score to highest, when you have completed the spreadsheet, just go to the 'Sorting' worksheet (tab at the bottom) - then you can
use the Sort functions. Scores are brought through automatically from the main spreadsheet.
Once you have the score ratings sorted, you can determine risk ratings - the parameters are completely up to you.
*You can find further information in the Spreadsheet - just drag the mouse over the little red triangle in the cell marked 'How does this work?'.
How do you keep the Spreadsheet updated?
The spreadsheet will be updated as and when changes occur - just check our Updates page for further information.
This is a working document so expect to see some tweaks from time to time. Any thoughts, comments, notification of errors etc. are much
appreciated. Just visit the Contact page.
| KnowYourCountry |
| Risk Rating Spreadsheet Information |
| Last Updated: 30 January 2012 |