ML/TF definition
Examples of ML/TF in a sentence
The Supplier must also, if directed to do so by the Bank, establish as soon as practicable, and maintain and comply with, systems, controls and procedures or any of them that are designed to identify, manage and mitigate ML/TF Risk.
Trade finance poses a higher inherent ML/TF risk as trade transactions are often complex and involve multiple parties, international jurisdictions and many steps for each transaction.
Effective detection and prevention of ML/TF depends on timely identification and reporting of suspicious transactions within the financial services sector.
Additional or enhanced CDD, is required where there is a high risk of ML/TF.
The coordinating bodies shall take the necessary measures to identify, assess and mitigate the ML/TF risks that Belgium faces, as well as any related data protection issue.
Correspondent banking poses a higher ML/TF risk due to the limited information on the nature and purpose of account transactions that is usually available to the domestic bank who has agreed to receive deposits and make payments on behalf of a foreign bank.
It allows a firm to identify the particular ML/TF risks to which it is exposed due to its business model.
The CJA 2010 categorises correspondent banking as presenting a high ML/TF risk and therefore, under Section 38(1), firms are required to conduct enhanced CDD before entering into a correspondent banking relationship with a credit institution situated outside of the EU.
Insufficient or absent ML/TF risk management policies, procedures and processes exposes firms to significant risks, including not only financial, but also reputational, operational and compliance risks.
The Central Bank’s investigation identified twelve breaches of the CJA 2010, namely: A thorough assessment of ML/TF risk exposure is fundamental to a robust AML/CFT framework.