ECOVIS ProventusLaw would like to remind FinTech market participants that the revised Guidelines on money laundering and terrorist financing risk factors has entered into force on 7th of October, 2021.
The ML/TF Risk Factors Guidelines` describes:
- The main factors which shall be considered by the financial institutions when assessing the risks of money laundering and terrorist financing in relation to their business and business relationships and one-off transactions and/or operations with natural and legal persons.
- Provisions on how companies shall apply customer due diligence measures to reduce and manage aforementioned risks.
What are the benefits of these Guidelines?
First of all, the updated Guidelines will help financial market participants to implement more effective, risk-based approach to AML/CFT matters. The guidelines provide requirements for the client and all performance evaluation and customer due diligence measures, provisions related to the identification of beneficiaries.
Guidelines were updated in the following areas:
- business-wide and individual ML/TF risk assessments;
- customer due diligence measures including on the beneficial owner;
- terrorist financing risk factors; and
- new guidance on emerging risks, such as the use of innovative solutions for CDD purposes.
For more detailed information about the revised Guidelines and their implementation please refer to our article: EBA Revises Guidelines on Money Laundering and Terrorist Financing Risk Factors (ecovis.lt).