Money Laundering and Terrorist Financing (ML/TF) Risk Appetite Statement Template

Description
Money Laundering and Terrorist Financing (ML/TF) Risk Appetite Statement template for a financial institution (bank, specialised bank, payments or electronic money institutions, etc.).

This best practice includes Risk Appetite Framework, which defines company's willingness to accept ML/TF risks related to overall client portoflio, onboarding and servicing channels and geographic areas; template for KRIs (Key Risk Indicators) setting and monitoring; as well as general information such as Purpose, Responsibilities, Communication and Review Process of the risk appetite statement. Framework includes references to the main sanctions lists (e.g. United Nations Security Council, European Union, OFAC sanctions lists) and lists of jurisdictions with higher inherent ML/TF risk (e.g. European Union, FATF lists). Additionally, framework includes risk appetite aspects related to client servicing via agents (e.g. for money remittance services).

Template has been developed during multiple iterations with established banks and FinTech companies in European Union and Great Britain and has now been used in real business situations numerous times.

For a full user flexibility this template is fully workable and editable and comments are provided for easy user guidance.

Authors are ready to support you in case you require additional advice in application within your environment or need further customisation of the template.