High-Risk Sectors in Know Your Customer Profession

All high-risk sectors related to money laundering are covered in this course.

Customer Due Diligence (CDD) analysts assign risk ratings to clients' business activities based on the potential for money laundering or terrorist financing.

Increased risk sectors, as defined by the Prevention of Money Laundering and Terrorist Financing Act, refer to industries where the risk of financial crimes is considered lower.

Knowledge of high-risk sectors is necessary for both Customer Due Diligence (CDD) analysts and Transaction Monitoring analysts.

Mitigating factors cannot be used to lower the risk rating assigned to a client's business activities.

This course is designed to provide a comprehensive understanding of all complex topics related to money laundering and terrorist financing.

Risk classifications are not covered in the introductory CDD course.

In Transaction Monitoring, the primary concern is whether the money is coming from or going to a high-risk sector.

Triggers for reporting a suspicious transaction include the customer's statement not fitting their profile, the customer not providing a statement or supporting documents, and the customer's willingness to provide information.

The high-risk sectors related to money laundering mentioned in the text include the transport sector, the emerging cryptocurrency sector, the agricultural sector, commercial real estate, trust service providers, and cash-intensive businesses.

The transportation sector is considered an increased risk for money laundering due to factors such as the involvement of international trade, complex logistics chains, and the potential for cash payments.

The transportation sector is one of the smallest sectors where it is difficult to monitor products and documents.

Collaborations between countries have completely eliminated the challenges of controlling cargo and countering money laundering in the transportation sector.

Trade-based money laundering (TBML) involves manipulating trade transactions to disguise the proceeds of illegal activities by moving money across borders.

Over-invoicing in TBML involves understating the value of goods.

The multiple billing technique in TBML involves creating a single invoice for multiple shipments or transactions.