George Domjan

The AML/CTF Act implements a risk-based approach to regulation.

Businesses must meet the minimum obligations set out in the AML/CTF Act and AML/CTF Rules. Beyond that, each business must assess the risks of potential money laundering or terrorism financing when providing a designated service to a customer.

In the case of all companies with cash flow, the identification of the customer, the risk-based classification of the customer prior to establishing a new business relationship, the verification of identity, the identification of the beneficial owner, the activity revealing the purpose and intended nature of the business relationship and the ongoing monitoring of the business relationship is more than essential, it is mandatory in most of the cases. The control of the customer’s risk level and the measures to be taken in the event of a change in the risk level, as well as the updating of data and documents concerning the business relationship, play a significant role in the operation of the company.

In many cases, this is only a well-conceived interest of the business, but in some cases, it is required by law either.

It is mandatory for (just some examples of the most common businesses that are related):

• banks, financial institutes
• offline and online casinos, gambling providers
• registered office service, virtual business address service providers
• insurance companies
• estate agency businesses
• lawyers, solicitors, notaries
• trustee and fiduciary services
• handle cash payments of €10,000 or more in exchange for goods, etc.

From this list, it can clearly be seen that a wide range of services, businesses are mandated to act under the AML/CFT regulations, requirements.

What is Money-Laundering?