The Finmo risk assessment section provides brokers with tools to assess and manage potential client risks in alignment with FINTRAC’s AML and KYC requirements. By systematically verifying client information and conducting risk assessments, brokers can confidently comply with regulatory guidelines and detect signs of fraud or high-risk behaviour.
Using Finmo to do manual checks for fraud & risk assessment
Finmo’s "Risk assessment check" section enables brokers to manage client due diligence effectively by guiding them through key compliance checks. Here’s a breakdown of the main components:
1. Know Your Client (KYC) Check
Purpose: The KYC check verifies the borrower’s identity, helping brokers comply with FINTRAC’s identity verification requirements. This process includes confirming identification details such as name, birthdate, and government-issued ID, ensuring the borrower is accurately identified.
Process: After gathering the client’s government-issued ID (e.g., driver’s license, passport), brokers input and verify this data within Finmo’s KYC section.
Updating and Editing Details: If a borrower’s identification needs updating or further documentation, brokers can edit the details within the KYC section in Finmo.
FINTRAC Guidelines: To better understand KYC standards, consult FINTRAC’s Guidance on Identity Verification.
2. Politically Exposed Person (PEP) Check
Purpose: The PEP check is designed to identify clients or related individuals who are Politically Exposed Persons, as PEPs carry additional scrutiny under AML regulations due to their potential influence or access to significant resources.
Process: Brokers can conduct PEP screenings within Finmo by selecting PEP status during the client onboarding process. Any identified PEP connections will be documented, including details about the client’s relation to the PEP, official role, and wealth sources.
Documentation and Evaluation: Brokers should document findings related to a PEP status, such as relationships, positions, and any risk mitigation measures (e.g., reviewing bank statements or asset verification).
FINTRAC Guidelines: For full PEP compliance guidelines, refer to FINTRAC’s Politically Exposed Persons and Heads of International Organizations Guidance.
3. Ongoing Client Monitoring and Risk Management
Continuous Monitoring: Regularly updating client profiles and monitoring for any changes in risk factors is essential for staying compliant. In Finmo, brokers can revisit and update information in the risk assessment section as new data is available or if there are changes to the client’s status or financial behaviour.
Editing Risk Details: Finmo’s risk assessment section allows brokers to edit and document details on a client’s risk profile, including any changes in KYC, PEP, or transaction behaviour, ensuring a complete and up-to-date record.
FINTRAC Reporting: In situations where risk assessment indicates potential money laundering or suspicious activity, brokers should consult FINTRAC’s guidelines on Reporting Suspicious Transactions.
Additional Resources
FINTRAC AML Compliance Program Requirements: Provides an overview of AML program requirements, including risk assessment, monitoring, and reporting. AML Compliance Program
FINTRAC KYC and ID Verification Guidelines: Outlines standards for confirming client identity through acceptable methods. KYC and ID Verification Guide
FINTRAC’s Risk Assessment Guidance: A comprehensive guide on implementing effective risk assessment policies. Risk Assessment Guidance
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