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Annex II Lower risk factors

The following is a non-exhaustive list of factors and types of evidence of potentially lower risk referred to in Article 20:

  1. (1)
    Customer risk factors:

    1. (a)
      public companies listed on a stock exchange and subject to disclosure requirements (either by stock exchange rules or through law or enforceable means), which impose requirements to ensure adequate transparency of beneficial ownership;
    2. (b)
      public administrations or enterprises;
    3. (c)
      customers that are resident in geographical areas of lower risk as set out in point (3);

  2. (2)
    Product, service, transaction or delivery channel risk factors:

    1. (a)
      life insurance policies for which the premium is low;
    2. (b)
      insurance policies for pension schemes if there is no early surrender option and the policy cannot be used as collateral;
    3. (c)
      a pension, superannuation or similar scheme that provides retirement benefits to employees, where contributions are made by way of deduction from wages, and the scheme rules do not permit the assignment of a member’s interest under the scheme;
    4. (d)
      financial products or services that provide appropriately defined and limited services to certain types of customers, so as to increase access for financial inclusion purposes;
    5. (e)
      products where the risks of money laundering and terrorist financing are managed by other factors such as purse limits or transparency of ownership (e.g. certain types of electronic money);

  3. (3)
    Geographical risk factors — registration, establishment, residence in:

    1. (a)
      Member States;
    2. (b)
      third countries having effective AML/CFT systems;
    3. (c)
      third countries identified by credible sources as having a low level of corruption or other criminal activity;
    4. (d)
      third countries which, on the basis of credible sources such as mutual evaluations, detailed assessment reports or published follow-up reports, have requirements to combat money laundering and terrorist financing consistent with the revised FATF Recommendations and effectively implement those requirements.