Regulatory Alerts2022-02-23
FMA Circular on Risk Assessment for the Prevention of Money Laundering and Terrorist Financing
The Austrian Financial Market Authority (FMA) issued this circular to guide obliged financial entities in implementing the risk-based approach for preventing money laundering and terrorist financing under the Financial Markets Anti-Money Laundering Act. The document mandates that institutions conduct comprehensive risk assessments at both the organizational and individual customer levels by systematically identifying, analyzing, and weighting entity-specific, product-related, and geographical risk factors. It further requires firms to derive total risk profiles, implement proportionate mitigating measures, and align their internal controls with Austria’s national risk assessment findings and European Banking Authority guidelines.
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