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[FREE EPDF] COUNTRY RISK AND MONEY LAUNDERING | Chapter 9 | IIBF KYC AML

Did you know that just doing business with the “wrong” country can increase your bank’s AML risk? That’s the reality in today’s globally connected financial world, where country-specific risks can make or break your AML compliance.

In this power-packed session, we decode Chapter 9 of the KYC AML CFT syllabus — Country Risk in Money Laundering. You’ll learn how cross-border transactions, regulatory differences, and global sanctions affect risk assessments. Plus, we explore FATF’s Black & Grey lists, UN embargoes, and sanctions from major nations like the USA, UK, and EU.

Whether you’re a banker preparing for CCP or JAIIB, or a compliance professional looking to brush up your knowledge, this session is tailored for you!

👉 Watch till the end to gain practical insights that can help you not only clear exams but also shine in your banking role.

👇 Don’t forget to drop your thoughts or questions in the comment section — we love engaging with our learner community!

📺 Before we dive in, watch this video for a complete breakdown:

🧩 Timestamps & Topic-Wise Explanation

⏰ 00:00 – What is Country-Specific Risk in Money Laundering?

Money launderers don’t just move money — they move risk. Criminals shift funds across borders to exploit regulatory loopholes. Why? To hide the source and make tracing harder.

⏰ 01:46 – Financial Regulatory Regimes & Exploitation by Criminals

Each country has its own set of AML regulations. Some are strict, some lax, and some… don’t care at all.

  • Example: FATF standards are followed by many, but some countries barely comply — and that’s where criminals park their money.

⏰ 03:01 – Role of FATF: Identifying Risky Jurisdictions

FATF plays the watchdog. It evaluates nations and flags them in two main categories:

  • Black List – High-risk jurisdictions needing immediate action
  • Grey List – Countries under increased monitoring

Updated three times a year: February, June, October.

⏰ 04:47 – FATF Mutual Evaluation Criteria: The Big Six

If a country fails in these 6 core recommendations, it raises red flags:

  1. Criminalise money laundering
  2. Criminalise terrorist financing
  3. KYC regulations
  4. Enhanced customer due diligence
  5. Record keeping
  6. International cooperation

⏰ 07:20 – The 11 Immediate Outcomes: FATF’s Effectiveness Test

FATF checks: Have the rules made a difference? If 6+ outcomes score “low”, the country is treated as high-risk — even if laws exist on paper.

⏰ 10:36 – FATF Blacklist: The Most Dangerous Countries

As of March 2022, North Korea and Iran are on the Blacklist.

FATF recommends:

  • Special attention to transactions
  • Applying countermeasures
  • Monitoring correspondent relationships

⏰ 16:00 – Grey List: Countries Under Increased Monitoring

Grey list nations are working with FATF to fix their frameworks. Examples include UAE, Pakistan, Turkey, etc.

⏰ 19:04 – UN Embargoes & Global Sanctions

The UN can block entire countries from global dealings due to terrorism, nuclear threats, or human rights violations.

  • Arms bans
  • Travel bans
  • Asset freezes

⏰ 21:35 – Sanctions by USA, UK, and EU

🇺🇸 USA Sanctions:

  • Comprehensive: Total ban (e.g., Iran, NKorea)
  • Sectoral: Target specific sectors
  • Non-Comprehensive: Restrict specific individuals/entities

🇬🇧 UK Sanctions:

  • Arms embargo
  • Trade bans with specific countries
  • List of prohibited individuals (HMT List)

🇪🇺 EU Sanctions:

Focus on directives for peace and AML compliance — includes Iran, Iraq, Syria, etc.

[FREE EPDF] ORGANIZATION STRUCTURE IN INDIA | Chapter 7 | KYC AML

⏰ 27:17 – Country Risk Categorization by Banks

Banks must consider Country Risk while:

  • Assessing customer profiles
  • Monitoring cross-border transactions

Indicators: Legal framework, terrorism level, FATF status, sanctions, tax laws, etc.

📝 Download PDF Notes of This Session

🎁 Want a handy revision document?

👉 Click here to download the full PDF notes

✅ Conclusion: Key Takeaways & Action Steps

Understanding country-specific risks is crucial — not just for exams, but for real-world banking operations.

🔑 What you should do next:

  • Factor country risk into compliance frameworks
  • Follow FATF updates
  • Implement effective monitoring strategies

👇 Got questions or want to share your thoughts? Leave a comment below!

📲 Don’t forget to subscribe, follow us on Telegram, and check out our full CCP Combo Course!

🔍 SEO Keywords Used:

  • Country-specific risk in money laundering
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  • AML compliance in banking
  • UN embargoes and economic sanctions
  • JAIIB CCP AML CFT chapter 9 notes
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