Countries identify, assess and understand their money laundering and terrorist financing risks, designate an authority or mechanism to coordinate the assessment and the allocation of resources, and apply a risk-based approach so that preventive and mitigating measures are proportionate to the risks found, addressing higher risks adequately and allowing and encouraging simplified measures where risks are lower; they do the same for proliferation financing risk, meaning strictly the risk of breach, non-implementation or evasion of the targeted financial sanctions of Recommendation 7, while always implementing those sanctions in full; and they require financial institutions and DNFBPs to identify, assess and take effective risk-based action against their own money laundering, terrorist financing and proliferation financing risks. The Interpretive Note sets out the country and institution obligations, the treatment of financial inclusion and the conditions for simplified measures.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.