Financial and credit institutions across EU Member States
constantly strive to identify and manage their day-to-day risks in
the most efficient manner.
Occasionally, when faced with elevated risks, organisations may
be led to take difficult decisions. One may think that an easy way
out of managing risk is to refuse business relationships or
transactions altogether, particular those susceptible to higher
levels of ML/FT risk.
Whilst it is recommended that organisations identify and assess
the extent of risk they are willing to accept, the outright refusal
of certain broad categories of customers, without due consideration
to case-by-case circumstances or individual risk profiles, may be
unnecessary and most likely, a sign of ineffective ML/FT risk
management.
