AML RISK ASSESSMENT

i. Low Risk (Level I)

Individuals (other than High Net Worth) and entities whose identities and sources of wealth can be easily identified and transactions in whose accounts by and large conform to the known profile may be categorized as low risk. Examples include salaried individuals whose sources of income can be easily confirmed.

ii. Medium Risk (Level II)

Customers that are likely to pose a higher than average risk to the bank may be categorized as medium or high risk depending on customer’s background, nature and location of activity, country of origin, sources of funds and his client profile etc; such as:

a) Persons in business/industry or trading activity where the area of his residence or place of business has a scope or history of unlawful trading/business activity.

b) Where the client profile of the person opening the transaction , according to the perception of the company, is doubtful or dubious

iii. High Risk (Level III)

The company may apply enhanced due diligence measures based on the risk assessment, thereby requiring intensive ‘due diligence’ for higher risk customers, especially those for whom the sources of funds are not clear. The examples of customers requiring higher due diligence may include

a) Non Resident Customers,

b) High Net worth individuals

c) Trusts, charities, NGOs and organizations receiving donations,

d) Companies having close family shareholding or beneficial ownership

e) Firms with ‘sleeping partners’

f) Politically Exposed Persons (PEPs) of foreign origin

g) Those with dubious reputation as per public information available, etc.