What is a risk assessment?

Reporting entities are required to assess the money laundering and financing of terrorism risk that they may reasonably expect to face in the course of their business. In making this assessment, the reporting entity is required to consider:
i. Nature, size and complexity of its business;
ii. Products and services it offers;
iii. Methods by which it delivers products and services to its customers;
iv. Types of customers it deals with;
v. Countries it deals with;
vi. Institutions it deals with;
vii. Any guidance material produced by supervisors;
viii. Any other factors that are set out in regulations.
Reporting entities also need to consider whether any of their products involve new or developing technologies that may favour customer anonymity.