Section 7D: Identifying, Assessing and Managing Risk

1) The indexing entity shall identify and assess the risks associated with financial investment in money laundering and terrorist activities on the basis of its country, geographical region, business or profession, sector, customers, services or products, including trade and means of distribution.

2) When identifying and assessing risks pursuant to sub-section (1), the indicator institution shall base its assessment carried out by the national risk assessment or regulatory body.

3) In making a risk assessment pursuant to sub-section (1), the risk level shall be determined by analysing all aspects relating to the risk.

4) The reporting entity shall keep in writing all information, information and records relating to the assessment of risks made pursuant to this section.

5) The risk assessment to be carried out by the indicator institution in accordance with sub-section (1) shall be carried out periodically and updated as required.

6) The referring body shall provide the records pursuant to sub-section (4) to the relevant regulatory body. It shall also provide such records to such body if so requested by any other relevant body.

7) The indicator institution shall update such arrangement from time to time in accordance with the level of risk identified in accordance with the level of risk identified in accordance with this section, including the policy, procedural, and regulatory arrangements necessary to identify, manage and mitigate the risk to the customer.

8) The reporting entity shall regularly monitor the non-implementation of the policy, procedural and risk management provisions pursuant to sub-section (7).