Duties and responsibilities under the Proceeds of Crime Act 2002
7 - Risk-based approach
A risk-based approach focuses effort where it is most needed and will have most impact. It requires the full commitment and support of senior management, and the active co- operation of all employees.
A risk-based approach involves a number of steps to assess the most proportionate way to manage and mitigate the risks faced by the operator:
- identifying the money laundering risks relevant to the operator
- designing and implementing policies, procedures and controls to manage and mitigate the risks
- monitoring and improving the effective operation of these controls
- recording what has been done, and why.
The possibility of gambling being used by criminals to assist in money laundering poses many risks for operators. These include criminal and regulatory sanctions for operators and their employees (including the potential loss of licences), civil action against the operator, damage to the reputation of the operator leading to a loss of business, and inflated or false business performance.
Operators need to continually identify, assess and prevent these risks, just like any other business risk. Operators should assess the level of risk in the context of how their business is structured and operated, and the controls in place to minimise the risks posed to their business by money launderers, including those engaged in criminal spend.
The risk-based approach is discussed in Risk-based approach of this advice.Previous section
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Last updated: 12 November 2020
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