The Bangko Sentral ng Pilipinas (BSP) announced on Tuesday that it had adopted a new assessment system for financial institutions’ money-laundering and terrorist-financing risks. “The MRAS is a tool to assess the inherent ML/TF and proliferation financing (PF) risk and the quality of [the] risk management system to determine the net ML/TF/PF risk of BSFIs, taking into account their risk and context, business models and operations, among others,” she explained. According to the memorandum, the system provides the platform to evaluate the level of inherent risks and the quality of risk management and self-assessment systems of BSFIs to arrive at their net risk profile. The MRAS would gauge BSFIs’ inherent risk, which refers to the intrinsic risks arising from their business and relationships. It is “highly capable of withstanding ML/TF/PF risks and curbing ML/TF/PF activities,” the BSP said.

Source: Manila Times November 24, 2020 16:52 UTC