Regulatory Alerts2024-11-22
Supervisory Guidance on Business Risk Assessments for Money Laundering, Terrorist and Proliferation Financing
The Prudential Authority has issued supervisory guidance requiring South African banks and controlling companies to implement robust, board-approved business risk assessments for money laundering, terrorist financing, and proliferation financing (ML/TF/PF). The document mandates the continuous evaluation of inherent and residual risks across customer bases, products, delivery channels, geographies, and operations, while ensuring consistent application of the higher AML/CFT standards between South Africa and host jurisdictions. It outlines best practices for developing risk assessment methodologies, calculating residual risk scores through quantitative and qualitative data, and strengthening internal controls to enhance overall financial crimes compliance.