47 findings identified across 13 supervised businesses in customer risk assessment thematic examination

We undertook a thematic examination to assess the extent to which supervised businesses had applied a suitable risk-based approach to customer due diligence measures. We also considered whether they had adequately assessed the risk that their business relationships, or one-off transactions, would involve money laundering and terrorist financing.

The examinations were conducted at 14 supervised businesses, with no findings identified at one of them. For the remaining 13, 47 findings were identified; 44 within and three outside of the scope of the theme.

The following chart shows the breakdown of the findings from the examination.

In addition to the examinations, we issued a questionnaire to a further 19 supervised businesses, with the responses considered alongside our findings.

There were a number of examples of good practice identified during the examinations and in the responses received from the questionnaire. Boards and senior management are encouraged to consider enhancements to systems and controls in line with the good practice described in section 5 of the paper.

Read the full feedback paper.

At the end of March, we will host a webinar taking a more detailed look at the findings.