Article 8 — National risk assessment

Financial crimeLevel 1DirectiveAMLD6In forceVerifiedOfficial source

1.Each Member State shall carry out a national risk assessment to identify, assess, understand and mitigate the risks of money laundering and terrorist financing, and the risks of non-implementation and evasion of targeted financial sanctions affecting it. It shall keep that risk assessment up to date and review it at least every 4 years.

Where Member States consider that the risk situation so requires, they may review the national risk assessment more frequently or conduct ad hoc sectoral risk assessments.

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8(2)

2.Each Member State shall designate an authority or establish a mechanism to coordinate the national response to the risks referred to in paragraph 1. The identity of that authority or the description of the mechanism shall be notified to the Commission. The Commission shall publish the list of the designated authorities or established mechanisms in the Official Journal of the European Union.

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8(3)

3.In carrying out the national risk assessments referred to in paragraph 1 of this Article, Member States shall take into account the report referred to in Article 7(2), including sectors and products covered and the findings of that report.

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8(4)

4.Member States shall use the national risk assessment to:

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8(4)(a)

(a)improve their AML/CFT regimes, in particular by identifying any areas where obliged entities are to apply enhanced measures in line with a risk-based approach and, where appropriate, specifying the measures to be taken;

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8(4)(b)

(b)identify, where appropriate, sectors or areas of lower or greater risk of money laundering and terrorist financing;

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8(4)(c)

(c)assess the risks of money laundering and terrorist financing associated with each type of legal person established in their territory and each type of legal arrangement which is governed under national law, or which is administered in their territory or whose trustees or persons holding equivalent positions in similar legal arrangements reside in their territory; and have an understanding of the exposure to risks deriving from foreign legal persons and foreign legal arrangements;

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8(4)(d)

(d)decide on the allocation and prioritisation of resources to combat money laundering and terrorist financing as well as non-implementation and evasion of targeted financial sanctions;

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8(4)(e)

(e)ensure that appropriate rules are drawn up for each sector or area, in accordance with the risks of money laundering and terrorist financing;

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8(4)(f)

(f)make appropriate information available promptly to competent authorities and to obliged entities to facilitate the carrying out of their own money laundering and terrorist financing risk assessments as well as the assessment of risks of non-implementation and evasion of targeted financial sanctions referred to in Article 10 of Regulation (EU) 2024/1624.

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In the national risk assessment, Member States shall describe the institutional structure and broad procedures of their AML/CFT regime, including the FIU, tax authorities and prosecutors, the mechanisms for cooperation with counterparts within the Union or in third countries, as well as the allocated human and financial resources to the extent that this information is available.

8(5)

5.Member States shall ensure appropriate participation of competent authorities and relevant stakeholders when carrying out their national risk assessment.

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8(6)

6.Member States shall make the results of their national risk assessments, including updates and reviews, available to the Commission, to AMLA and to the other Member States. A Member State may provide relevant additional information, where appropriate, to the Member State carrying out the national risk assessment. A summary of the findings of the assessment shall be made public. That summary shall not contain classified information. Any document disseminated or made public pursuant to this paragraph shall not contain any information permitting the identification of any natural person or name any legal person.

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