BACKGROUND

RISK BASED APPROACH

There is no universally agreed definition by either competent authorities or financial institutions that prescribes whether a particular country or geographic area (including the country within which the financial institution operates) represents a higher risk. However, at the time of any risk assessment, the following criteria relating to jurisdictional risk should be determined: -

 

  • The customer's domicile and/or tax residency

  • The customer's nationality

  • The customer's principal countries of economic activity