Anti-Money Laundering Risk Rating System

This is to notify all members and partners of RBAP of the newly issued Anti-Money Laundering Risk Rating System, adopted under MB Resolution 362 dated March 2 of this year.  With the approval of this rating system, expect the inclusion of new composite rating scheme, assessment tools, guidelines and the like when the BSP conducts an on-site examination.    The guidelines, sample questionnaire, details on audit control are provided below, which the BSP requires all covered financial institutions to thoroughly review and comprehend.

As explained by the BSP, the implementation of this risk rating system is to ensure that the risk management practices protecting banks and non bank FIs from money laundering activities and terrorist financing are sound and in place.  It is not intended to hamper all covered FIs with additional regulatory mechanisms, but complements Principle 19 of the Basel Core Principles of Effective Banking Supervision.

As an overview, the composite rating is based on a 1-4 numerical scale; 4 having the highest operational practices and 1 signifying weakness in the risk management system.  Stipulated in this resolution, FIs with a rating of 1 requires the highest supervisory concern and may be placed within the framework of prompt corrective action.

To secure a copy of the new ARRS, please download from our Slideshare account.

For your information and guidance.

Arrs
View more documents from RBAPAT54