ANNEX III

MONEY LAUNDERING AND TERRORIST FINANCING RISK PROFILE

1.   Less significant risk profile:

The financial sector operator, branch, agent or distributor has a less significant risk profile where its inherent risk is less significant and its risk profile remains unaffected by mitigation, or where inherent risk is moderately significant or significant but is effectively mitigated through anti-money laundering and combating the financing of terrorism (AML/CFT) systems and controls.

2.   Moderately significant risk profile:

The financial sector operator, branch, agent or distributor has a moderately significant risk profile where its inherent risk is moderately significant and its risk profile remains unaffected by mitigation, or where its inherent risk is significant or very significant but is effectively mitigated through AML/CFT systems and controls.

3.   Significant risk profile:

The financial sector operator, branch, agent or distributor has a significant risk profile where its inherent risk exposure is significant and the risk profile remains unaffected by mitigation, or where its inherent risk is very significant but is effectively mitigated through AML/CFT systems and controls.

4.   Very significant risk profile:

The financial sector operator, branch, agent or distributor has a very significant risk profile where its inherent risk is very significant and, regardless of the mitigation, the risk profile remains unaffected by mitigation, or where the inherent risk is very significant but is not effectively mitigated due to systemic AML/CFT system and control weaknesses in the financial sector operator.

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ELI: http://data.europa.eu/eli/reg_del/2024/595/oj

ISSN 1977-0677 (electronic edition)