Guidance on The Risk-Based Approach

The purpose of this guidance is to:

• indicate good industry practice in AML/CFT procedures through a proportionate, risk-based approach; and
• assist Licensed Parties to design and implement the systems and controls necessary to apply a risk-based approach that effectively mitigates the risks of the Licensed Party being used in connection with money laundering and the financing of terrorism.

The guidance does not address every possible scenario and it is guidance on best practice. Licensed Parties must develop AML/CFT policies, procedures, systems and controls that are appropriate for the nature, scale and complexity of their respective businesses.

The guidance does not replace AML/CFT law and other relevant legislation applicable in the State of Qatar. Licensed Parties remain responsible for compliance with legislation which is relevant to their operations.

This guidance is intended to assist Licensed Parties develop a Risk-Based Approach (RBA) to managing their Money Laundering (ML) / Terrorist Financing (TF) risks. It consists of the following:

• general information about risk management frameworks that Licensed Parties may wish to consider in developing and implementing a risk-based approach to identify, mitigate and manage ML / TF risks;
• guidance to assist Licensed Parties in implementing a risk-based approach, including guidance on developing a Threat Assessment Methodology, conducting a Business Risk Assessment, undertaking risk profiling and scoring business relationships and ensuring appropriate risk mitigation; and
• guidance and information to assist Licensed Parties on dealing with higher risk countries.