Under the Money Laundering Regulations 2017, what additional risk assessment must be done alongside the risk of money laundering?

The requirement to conduct an additional risk assessment alongside the risk of money laundering is rooted in the recognition that various forms of financial crime often interconnect. Terrorist financing presents a significant risk that can overlap with money laundering activities, as both involve the movement of funds that may be illicit or misused for harmful purposes.

The Money Laundering Regulations 2017 emphasize the necessity of understanding and mitigating the risks associated not only with money laundering but also with the financing of terrorism. This dual-focus risk assessment helps organizations develop robust procedures and controls to address these threats effectively. By assessing the risks of terrorist financing in conjunction with money laundering, businesses can better protect themselves from being inadvertently involved in illegal activities and can align their compliance efforts with regulatory expectations.

In this context, while bribery, sanctions, and fraud are also significant risks within the financial crime landscape, the specific regulation emphasizes the synergy between money laundering and terrorist financing, making it imperative for organizations to address these risks together.