Response to consultation on Guidelines on risk factors and simplified and enhanced customer due diligence
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a) Do you consider that these guidelines are conducive to firms adopting risk-based, proportionate and effective AML/CFT policies and procedures in line with the requirements set out in Directive (EU) 2015/849?
Yes, we do consider these guidelines as conducive. They contain valuable guiding principles on applying the risk- based approach by laying out a methodology on how the risks of AML and CFT should be identified and assessed by firms. The catalogue of the risk factors, which have to be taken into consideration when identifying and assessing potential AML/ CFT risks is very helpful and can easily be implemented and incorporated in internal procedures concerning the prevention of money laundering and terrorist financing. Additionally, we strongly support the emphasis on the nature and the size of a firms' business when applying a risk-based approach. Therefore the guidelines allow firms to adopt effective AML and CFT procedures and policies which are proportionate to their activities.b) Do you consider that these guidelines are conducive to competent authorities effectively monitoring firms’ compliance with applicable AML/CFT requirements in relation to individual risk assessments and the application of both simplified and enhanced customer due diligence measures?
Yes, the guidelines very clearly determine the specifications of the risk-based approach as well as the application of simplified and enhanced customer due diligence. Thus, these guidelines help the competent authorities to set clear expectations of the risk factors, which should be considered by firms when making their risk assessment and customer due diligence. On the other side, the guidelines also help firms to better understand what measures are expected of them and which risk factors have to be considered when identifying and assessing the AML/CFT risks as well as deciding on the appropriate customer due diligence level. Additionally, the fact that the competent authorities have to take into account the nature, scale and complexity of the firms' activities when assessing and monitoring a firms compliance with the applicable AML/CFT requirements allows an effective and proportionate evaluation of a firm.c) The guidelines in Title III of this consultation paper are organised by types of business. Respondents to this consultation paper are invited to express their views on whether such an approach gives sufficient clarity on the scope of application of the AMLD to the various entities subject to its requirements or whether it would be preferable to follow a legally-driven classification of the various sectors; for example, for the asset management sector, this would mean referring to entities covered by Directive 2009/65/EC and Directive 2011/61/EU and for the individual portfolio management or investment advice activities, or entities providing other investment services or activities, to entities covered by Directive 2014/65/EU.
We welcome the chosen structure of these guidelines in general and especially the structure of the sector specific Title III. The fact, that the guidelines contain a part, that is applicable to all firms (Title II) and a supplementary part (Title II), that is sector specific, allows to develop a common understanding of the risk-based approach and should lead to a uniform EU-wide standard. By focusing on different types of business, instead of focusing on legal definitions of the different sectors, the guidelines are sufficiently clear and even better understandable for the addressees."Upload files
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