1. Money Laundering Risk Areas
The World Bank
Other High
Money Laundering Risk Areas
Mark Butler
Financial Sector Specialist,
Financial Market Integrity, The World Bank
April 17, 2006

2. Overview Risk Assessment High Risk Customer Policy
High Risk Customer Types
High Risk Product Types
Country Specific Risks

3. Risk Assessment Adopting Risk Based Approach Customer Types
Product Type
Geographical Factors

4. High Risk Customer Policy
Account Opening
Identify and Verify
Additional Information
Senior Management Approval
Account Monitoring
Type of Monitoring and Frequency
Renewal of Customer Information
Renewal of Authority to Maintain Account

5. High Risk Customer Types
Politically Exposed Persons
Cash Intensive Businesses
High Risk Business Activities
Private Banking
Complex Corporate Structures
Use of Intermediaries

6. High Risk Customer Types
Politically Exposed Persons
Individuals who are or have been entrusted with prominent public functions in a foreign country, such as Heads of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, important political party officials

7. High Risk Customer Types
Cash Intensive Businesses
Casinos
Foreign Exchange
Remittance Businesses
High Risk Business Activities
Arms / Chemicals

8. High Risk Customer Types
Private Banking
High Net Worth Individuals
PEPs
Complex Corporate Structures
Intermediaries

9. High Risk Product Types
- Ease of Access to Funds
Passbook / Cheque / ATM / Phone Banking / Internet Banking
Ability to Conduct Wire Transfers
No time restrictions
Withdrawal charges
International Access
Interaction with the Account Holder
Expected Activity Level within the Account
Expected Size and Turnover of the Account

10. Country Specific Risks
Low or no AML/CFT regulation
High Levels of Corruption
Links to Crime
Drugs
Fraud
Counterfeit Goods
Illegal Logging

11. Money Laundering Risk Areas
The World Bank
Other High
Money Laundering Risk Areas
Mark Butler
Financial Sector Specialist,
Financial Market Integrity, The World Bank
April 17, 2006