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Stephanie Ygoa

Proliferation financing and the private sector: keeping pace with expectations

The need to raise awareness and understanding of proliferation financing (PF) in the private sector is urgent. Three years ago, FATF amended its Standards to require financial institutions and designated non - financial business and professions to identify, assess, and mitigate PF risks. These amendments became law in the UK last year and regulated entities must conduct a PF risk assessment and produce a copy to the relevant supervisory authority on request.

As a global leader, the UK is leading the way in counter-PF efforts, and other jurisdictions are likely to follow. Even without legislative change, rising regulatory expectations make PF risk assessments necessary. This white paper provides a brief overview of the latest intelligence on PF risk.

Common ‘Red flags’ associated with PF activity are set out below. These represent just a fraction of the risk indicators that have been distilled from the intelligence available.

  • Transaction deals with dual-use goods or other controlled commodities
  • Corporate customer is a shell or front company
  • Corporate customer is involved in business events that do not match the business description/profile
  • Transaction or goods are sent through another jurisdiction without any apparent commercial reason
  • Parties involved in the trade transaction are controlled by the same individual(s)

In the coming weeks’, Acuminor will release new updates to our SaaS platform Risk Assessment Professional with 30 new risk indicators for Proliferation financing. This gives you the opportunity to expand your knowledge of PF with our detailed analysis, assess the potential risks of PF to your business and dynamically conduct your financial crime business wide risk assessment with PF risks included. Read more about Risk Assessment Pro here .

If you would like to know how Risk Assessment Pro can improve your daily work, please read more and sign-up to get more information.


Read the paper below:

Download Proliferation financing and the private sector