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Understanding and Assessing Country Risk 

Welcome  to our Country Risk Training Module.

 

This training module is designed to help you in your understanding and assessment of the risks posed when dealing with customers for whom cross-border country risk has to be considered.

 

When assessing a customer’s risk profile, Financial Institutions need to consider not only the financial crime risk related to the customer and the customer’s source of funds and source of wealth, but also the legal frameworks and their effectiveness, as well as the political environment in the countries where the customer is active.

This training module has been designed to provide an overview of Country risk elements and factors, and the tools available for assessment.   

We also provide a case study relevant to this module, which discusses the money laundering scandal at the Estonian branch of Danske Bank that involved the trans-national movement of EUR200 billion of suspicious transactions which flowed through its non-resident portfolio. The case study is presented with the kind permission of the authors, Lee Reiners and Joseph A. Smith Jr. of the Duke Law Global Financial Markets Center