Final Guidelines - Joint Guidelines under Articles 17 and 18(4) of Directive (EU) 2015/849 on simplified and enhanced customer due diligence and the factors credit and financial institutions should consider when assessing the money laundering and terrorist financing risk associated with individual business relationships and occasional transactions (JC 2017 37) | Final Guidelines - Joint Guidelines under Articles 17 and 18(4) of Directive (EU) 2015/849 on simplified and enhanced customer due diligence and the factors credit and financial institutions should consider when assessing the money laundering and terrorist financing risk associated with individual business relationships and occasional transactions (JC 2017 37)

AI Summary of Final Guidelines - Joint Guidelines under Articles 17 and 18(4) of Directive (EU) 2015/849 on simplified and enhanced customer due diligence and the factors credit and financial institutions should consider when assessing the money laundering and terrorist financing risk associated with individual business relationships and occasional transactions (JC 2017 37)

Published date: 26 June 2017

Final Guidelines - Joint Guidelines under Articles 17 and 18(4) of Directive (EU) 2015/849 on simplified and enhanced customer due diligence and the factors credit and financial institutions should consider when assessing the money laundering and terrorist financing risk associated with individual business relationships and occasional transactions (JC 2017 37)

Status: Finalised see JC 2017 37


	1. Executive summary
	2. Background and rationale
	3. Joint guidelines under Articles 17 and 18(4) of Directive (EU) 2015/849 on simplified and enhanced customer due diligence and the factors credit and financial institutions should consider when assessing the money laundering and terrorist financing risk associated with individual business relationships and occasional transactions (the Risk Factors Guidelines)
	Status of these joint guidelines
	Reporting requirements
	Title I - Subject matter, scope and definitions (3.1-3.8)
	Subject matter (3.1-3.3)
	3.1
	3.2
	3.3
	Scope (3.4-3.7)
	3.4
	3.5
	3.6
	3.7
	Definitions (3.8)
	3.8
	Title II - Assessing and managing risk: general (3.9-3.71)
	3.9
	3.10
	Risk assessments: methodology and risk factors (3.11-3.40)
	3.11
	Identifying ML/TF risk (3.12-3.13)
	3.12
	3.13
	Sources of information (3.14-3.16)
	3.14
	3.15
	3.16
	Risk factors (3.17)
	3.17
	Customer risk factors (3.18-3.21)
	3.18
	3.19
	3.20
	3.21
	Countries and geographical areas (3.22-3.27)
	3.22
	3.23
	3.24
	3.25
	3.26
	3.27
	Products, services and transactions risk factors (3.28-3.31)
	3.28
	3.29
	3.30
	3.31
	Delivery channel risk factors (3.32-3.33)
	3.32
	3.33
	Assessing ML/TF risk (3.34-3.35)
	3.34
	3.35
	Weighting risk factors (3.36-3.38)
	3.36
	3.37
	3.38
	Categorising business relationships and occasional transactions (3.39-3.40)
	3.39
	3.40
	Risk management: simplified and enhanced customer due diligence (3.41-3.71)
	3.41
	3.42
	3.43
	Simplified customer due diligence (3.44-3.48)
	3.44
	3.45
	3.46
	3.47
	3.48
	Enhanced customer due diligence (3.49-3.51)
	3.49
	3.50
	3.51
	Politically Exposed Persons (3.52-3.53)
	3.52
	3.53
	Correspondent relationships (3.54-3.55)
	3.54
	3.55
	Unusual transactions (3.56-3.57)
	3.56
	3.57
	High-risk third countries and other high-risk situations (3.58-3.61)
	3.58
	3.59
	3.60
	3.61
	Other considerations (3.62-3.64)
	3.62
	3.63
	3.64
	Monitoring and review (3.65-3.71)
	Risk assessment (3.65-3.69)
	3.65
	3.66
	3.67
	3.68
	3.69
	Systems and controls (3.70)
	3.70
	Record keeping (3.71)
	3.71
	Title III - Sector-specific guidelines (3.72-3.226)
	3.72
	3.73
	3.74
	Chapter 1: Sectoral guidelines for correspondent banks (3.75-3.94)
	3.75
	3.76
	3.77
	Risk factors (3.78-3.83)
	Product, service and transaction risk factors (3.78-3.79)
	3.78
	3.79
	Customer risk factors (3.80-81)
	3.80
	3.81
	Country or geographical risk factors (3.82-3.83)
	3.82
	3.83
	Measures (3.84-3.88)
	3.84
	3.85
	3.86
	3.87
	3.88
	Respondents based in non-EEA countries (3.89-3.92)
	3.89
	3.90
	3.91
	3.92
	Respondents based in EEA countries (3.93-3.94)
	3.93
	3.94
	Chapter 2: Sectoral guidelines for retail banks (3.95-3.112)
	3.95
	3.96
	3.97
	Risk factors (3.98-3.105)
	Product, service and transaction risk factors (3.98-3.99)
	3.98
	3.99
	Customer risk factors (3.100-3.101)
	3.100
	3.101
	Country or geographical risk factors (3.102-3.103)
	3.102
	3.103
	Distribution channel risk factors (3.104-3.105)
	3.104
	3.105
	Measures (3.106)
	3.106
	Enhanced customer due diligence (3.107)
	3.107
	Simplified customer due diligence (3.108)
	3.108
	Pooled accounts (3.109-3.112)
	3.109
	3.110
	3.111
	3.112
	Chapter 3: Sectoral guidelines for electronic money issuers (3.113-3.127)
	3.113
	3.114
	Risk factors (3.115-3.121)
	Product risk factors (3.115-3.117)
	3.115
	3.116
	3.117
	Customer risk factors (3.118-3.119)
	3.118
	3.119
	Distribution channel risk factors (3.120)
	3.120
	Country or geographical risk factors (3.121)
	3.121
	Measures (3.122-3.124)
	3.122
	3.123
	3.124
	Enhanced customer due diligence (3.125)
	3.125
	Simplified customer due diligence (3.126-3.127)
	3.126
	3.127
	3.128
	3.129
	3.130
	3.131
	Chapter 4: Sectoral guidelines for money remitters (3.128-3.142)
	Risk factors (3.132-3.137)
	Product, service and transaction risk factors (3.132-3.133)
	3.132
	3.133
	Customer risk factors (3.134-3.135)
	3.134
	3.135
	Distribution channel risk factors (3.136-3.137)
	3.136
	3.137
	Country or geographical risk factors (3.138)
	3.138
	Measures (3.139-3.141)
	3.139
	3.140
	3.141
	Use of agents (3.142)
	3.142
	Chapter 5: Sectoral guidelines for wealth management (3.143-3.151)
	3.143
	3.144
	3.145
	Risk factors (3.146-3.148)
	Product, service and transaction risk factors (3.146)
	3.146
	Customer risk factors (3.147)
	3.147
	Country or geographical risk factors (3.148)
	3.148
	Measures (3.149)
	3.149
	Enhanced customer due diligence (3.150)
	3.150
	Simplified customer due diligence (3.151)
	3.151
	Chapter 6: Sectoral guidelines for trade finance providers (3.152-3.174)
	3.152
	3.153
	3.154
	3.155
	3.156
	3.157
	Risk factors (3.158-3.160)
	3.158
	3.159
	3.160
	Transaction risk factors (3.161-3.162)
	3.161
	3.162
	Customer risk factors (3.163-3.164)
	3.163
	3.164
	Country or geographical risk factors (3.165-3.166)
	3.165
	3.166
	Measures (3.167-3.169)
	3.167
	3.168
	3.169
	Enhanced customer due diligence (3.170-3.173)
	3.170
	3.171
	3.172
	3.173
	Simplified customer due diligence (3.174)
	3.174
	Chapter 7: Sectoral guidelines for life insurance undertakings (3.175-3.194)
	3.175
	3.176
	3.177
	3.178
	3.179
	Risk factors (3.180-3.187)
	Product, service and transaction risk factors (3.180-3.181)
	3.180
	3.181
	Customer and beneficiary risk factors (3.182-3.183)
	3.182
	3.183
	Distribution channel risk factors (3.184-3.185)
	3.184
	3.185
	Country or geographical risk factors (3.186-3.187)
	3.186
	3.187
	Measures (3.188-3.190)
	3.188
	3.189
	3.190
	Enhanced customer due diligence (3.191-3.193)
	3.191
	3.192
	3.193
	Simplified customer due diligence (3.194)
	3.194
	Chapter 8: Sectoral guidelines for investment firms (3.195-3.204)
	3.195
	3.196
	3.197
	Risk factors (3.198-3.201)
	Product, service or transaction risk factors (3.198)
	3.198
	Customer risk factors (3.199-3.200)
	3.199
	3.200
	Country or geographical risk factors (3.201)
	3.201
	Measures (3.202-3.204)
	3.202
	3.203
	3.204
	Chapter 9: Sectoral guidelines for providers of investment funds (3.205-3.226)
	3.205
	3.206
	3.207
	3.208
	3.209
	Risk factors (3.210-3.217)
	Product, service or transaction risk factors (3.210-3.212)
	3.210
	3.211
	3.212
	Customer risk factors (3.213-3.214)
	3.213
	3.214
	Distribution channel risk factors (3.215-3.216)
	3.215
	3.216
	Country or geographical risk factors (3.217)
	3.217
	Measures (3.218-3.219)
	3.218
	3.219
	SDD and EDD measures to be taken in the situations described in paragraphs 219a and 219b (3.220-3.221)
	3.220
	3.221
	SDD and EDD measures to be taken in situations described in paragraph 219c (3.222-3.223)
	3.222
	3.223
	SDD and EDD measures to be taken in situations described in paragraph 219d (3.224-3.226)
	3.224
	3.225
	3.226
	Title IV - Implementation (3.227)
	Implementation (3.227)
	3.227
	4. Accompanying documents
	4.1. Impact assessment (4.1.1-4.1.59)
	Introduction (4.1.1-4.1.2)
	4.1.1
	4.1.2
	Scope and objectives (4.1.3-4.1.5)
	4.1.3
	4.1.4
	4.1.5
	Baseline (4.1.6-4.1.9)
	4.1.6
	4.1.7
	4.1.8
	4.1.9
	Consistency with international AML/CFT standards (4.1.10-4.1.20)
	4.1.10
	Option 1 (4.1.11-4.1.13)
	4.1.11
	4.1.12
	4.1.13
	Option 2 (4.1.14-4.1.16)
	4.1.14
	4.1.15
	4.1.16
	Option 3 (4.1.17-4.1.19)
	4.1.17
	4.1.18
	4.1.19
	Preferred option (4.1.20)
	4.1.20
	Structure of the guidelines (4.1.21-4.1.28)
	4.1.21
	Option 1 (4.1.22-4.1.24)
	4.1.22
	4.1.23
	4.1.24
	Option 2 (4.1.25-4.1.27)
	4.1.25
	4.1.26
	4.1.27
	Preferred option (4.1.28)
	4.1.28
	Addressees (4.1.29-4.1.39)
	4.1.29
	Option 1 (4.1.30-4.1.32)
	4.1.30
	4.1.31
	4.1.32
	Option 2 (4.1.33-4.1.35)
	4.1.33
	4.1.34
	4.1.35
	Option 3 (4.1.36-4.1.38)
	4.1.36
	4.1.37
	4.1.38
	Preferred option (4.1.39)
	4.1.39
	Level of prescription (4.1.40-4.1.49)
	4.1.40
	Option 1 (4.1.41-4.1.45)
	4.1.41
	4.1.42
	4.1.43
	4.1.44
	4.1.45
	Option 2 (4.1.46-4.1.48)
	4.1.46
	4.1.47
	4.1.48
	Preferred option (4.1.49)
	4.1.49
	Costs and benefits (4.1.50-4.1.59)
	4.1.50
	4.1.51
	4.1.52
	Firms (4.1.53-4.1.56)
	4.1.53
	4.1.54
	4.1.55
	4.1.56
	Competent authorities (4.1.57-4.1.59)
	4.1.57
	4.1.58
	4.1.59
	4.2. Overview of questions for consultation
	4.3. Views of the stakeholder groups (4.3.60-4.3.62)
	4.3.60
	4.3.61
	4.3.62
	4.4. Feedback on the public consultation (4.4.63-4.4.84)
	4.4.63
	4.4.64
	4.4.65
	4.4.66
	4.4.67
	Summary of key issues and the ESAs' response (4.4.68-4.4.70)
	4.4.68
	4.4.69
	4.4.70
	Ensuring the consistent application of these guidelines by national competent authorities (4.4.71-4.4.73)
	4.4.71
	4.4.72
	4.4.73
	The status of these draft guidelines, in particular their relationship with existing national and international guidelines (4.4.74-4.4.77)
	4.4.74
	4.4.75
	4.4.76
	4.4.77
	Consistency with legal provisions in Union law (4.4.78-4.4.81)
	4.4.78
	4.4.79
	4.4.80
	4.4.81
	Distinguishing money laundering and terrorist financing risk factors (4.4.82-4.4.84)
	4.4.82
	4.4.83
	4.4.84
	Summary of responses to the consultation and the ESAs' analysis

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