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AI Summary of 3.7

Version date: 1 March 2021 - onwards

3.7

Where a firm uses automated IT systems to allocate overall risk scores to categorise business relationships or occasional transactions and does not develop these in house but purchases them from an external provider, it should understand how the system works and how it combines or weights, risk factors to achieve an overall risk score. A firm must always be able to satisfy itself that the scores allocated reflect the firm’s understanding of ML/TF risk and it should be able to demonstrate this to the competent authority.