Identification of money laundering and terrorist financing risk factors

Identification of those factors that may influence the risk of money laundering and terrorist financing in a country. These include, on the basis of the FATF classification:

• Threats (e.g. magnitude of illegal markets, level of investments by organised crime, level of tax evasion, etc);
• Vulnerabilities (e.g. level of use of cash, loopholes in the regulations, weaknesses of the financial system, etc);
• Consequences (e.g. the harm produced by money laundering on consumers or on market competition).

Designing the risk assessment methodology

Development of the risk assessment methodology, including operationalization of the risk factors, their combination, and specification of the outputs of the model.

Implementation of the risk assessment methodology in Italy, Netherlands and the United Kingdom

Test and implementation of the risk assessment methodology in the three countries covered (Italy, Netherlands and the United Kingdom), and in particular: collection of the relevant information in each country, execution of the model and discussion of its results.

Dissemination of IARM results

Presentation and dissemination of the results of Project IARM. This will include a final public conference in Brussels.

Project IARM will produce a number of deliverables, including a final report and an array of risk maps and matrices. Once developed, deliverables will be made available in the section Links and materials.