AMLA - Final Report - Draft Regulatory Technical Standards on the assessment of the inherent and residual risk profile of obliged entities
Article 40(2) of Directive (EU) 2024/1640 (AMLD) mandates AMLA to develop RTS to define a common methodology that supervisors will use to assess the level of money laundering and terrorist financing (ML/TF) risk to which obliged entities are exposed. This methodology defines how supervisors classify inherent and residual risk profiles and determines how often these risk profiles must be reviewed.
Supervisory approaches to entity-level ML/TF risk assessment are currently fragmented.To address this, the draft RTS introduces a risk-based methodology that is fully harmonised. Once applied, this methodology will inform individual supervisors’ supervisory strategies and inspection plans and create a shared understanding of the impact different risk factors have on obliged entities’ overall risk exposure.
The draft RTS will be submitted to the European Commission for adoption before being published in the Official Journal of the European Union
