The National Risk Assessment (NRA) identifies the primary concern for money laundering and terrorist financing risks that countries have.
Governments implement a National Risk Assessment to combat risk-based money laundering and terrorist financing (AML / CFT) actions, control, mitigate, and eliminate risks. The National Risk Assessment is a comprehensive process to help a country identify, assess, and understand the risks that arise from vulnerabilities that facilitate money laundering.
According to the Fourth Anti-Money Laundering Directive, all EU member states must constitute national risk assessments. By adopting a risk-based approach, states can prepare their national risk assessments according to the country's circumstances. National Risk Assessment reports are not explicitly created for sectors. Because highlighting current systematic risks is more important than highlighting sectoral risks in detail, institutions can prepare their own risk assessments within the national risk assessment scope.
The NRA process includes:
Governments aim to detect and prevent a possible money laundering and terrorist financing crime with the National Risk assessment.
Globalization is making all the countries of the world increasingly interconnected. Governments engage in joint activities in many areas such as health, technology, and economy, creating a national risk environment.
On the other hand, NRA is implemented to properly risk management and support the risk environment's decisions emerging with globalization.
There are some countries' National Risk Assessment are as follows:
United Kingdom (UK)
The latest National Risk Assessment report on money laundering and terrorist financing in the UK was published on December 17, 2020.
The report included shortcomings in the UK suspect activity reporting (SAR) regime. The report also refers to the pandemic process and the critical legal changes the UK has experienced in financial crimes over the past three years.
The national risk assessment (NRA) report on money laundering and terrorist financing (ML / TF) risks in Singapore was first published on January 10, 2014. It, implemented throughout the government and lasting for two years, covered 14 financial sub-sectors and eight non-financial sectors located in Singapore.
According to the report, some sectors were found to have higher ML / TF risk. Financial institutions must conduct a risk-based KYC, CDD process for clients belonging to these industries and take more comprehensive measures to reveal potential ML / TF risks.
Saudi Arabia conducted two separate risk assessments for money laundering (ML) and terrorist financing (TF) risks. Both assessments are based on various data. It includes various documents such as evaluations, surveys prepared for companies, statistics determined by the authorities, details of bilateral negotiations, reports from national and international sources.
The NRA has adopted several ways to improve Saudi Arabia's AML / CFT regime. These include:
With Sanction Scanner's risk-based AML solutions, you can easily manage your company's KYC, CDD processes and implement your company's risk assessments under your country's national risk assessment. For more information, you can contact us.