Subject matter

5. These guidelines set out factors firms should consider when assessing the money laundering and terrorist financing (ML/TF) risk associated with their business, and with a business relationship or an occasional transaction with any natural or legal person (‘the customer’). They also set out how firms should adjust the extent of their customer due diligence (CDD) measures in a way that is commensurate to the ML/TF risk they have identified.

6. These guidelines’ main focus is on risk assessments of individual business relationships and occasional transactions, but firms should use these guidelines mutatis mutandis when assessing ML/TF risk across their business in line with Article 8 of Directive (EU) 2015/849.

7. The factors and measures described in these guidelines are not exhaustive and firms should consider other factors and measures as appropriate.

Scope of application

8. These guidelines are addressed to credit and financial institutions as defined in Article 3(1) and 3(2) of Directive (EU) 2015/849 and competent authorities responsible for supervising these firms’ compliance with their anti-money laundering and counter- terrorist financing (AML/CFT) obligations.

9. Competent authorities should use these guidelines when assessing the adequacy of firms’ risk assessments and AML/CFT policies and procedures.