Section 33(6)

When assessing whether there is a high risk of money laundering or terrorist financing in a particular situation, and the extent of the measures which should be taken to manage and mitigate that risk, relevant persons must take account of risk factors including, among other things— customer risk factors, including whether— the business relationship is conducted in unusual circumstances; the customer is resident in a geographical area of high risk (see sub-paragraph (c)); the customer is a legal person or legal arrangement that is a vehicle for holding personal assets; the customer is a company that has nominee shareholders or shares in bearer form; the customer is a business that is cash intensive; the corporate structure of the customer is unusual or excessively complex given the nature of the company's business; the customer is the beneficiary of a life insurance policy; the customer is a third country national who is applying for residence rights in or citizenship of a state in exchange for transfers of capital, purchase of a property, government bonds or investment in corporate entities in that state; product, service, transaction or delivery channel risk factors, including whether— the product involves private banking; the product or transaction is one which might favour anonymity; the situation involves non-face-to-face business relationships or transactions, without certain safeguards, such as an electronic identification process which meets the conditions set out in regulation 28(19); payments will be received from unknown or unassociated third parties; new products and new business practices are involved, including new delivery mechanisms, and the use of new or developing technologies for both new and pre-existing products; the service involves the provision of nominee directors, nominee shareholders or shadow directors, or the formation of companies in a third country; there is a transaction related to oil, arms, precious metals, tobacco products, cultural artefacts, ivory or other items related to protected species, or other items of archaeological, historical, cultural or religious significance or of rare scientific value; geographical risk factors, including— countries identified by credible sources, such as mutual evaluations, detailed assessment reports or published follow-up reports, as not having effective systems to counter money laundering or terrorist financing; countries identified by credible sources as having significant levels of corruption or other criminal activity, such as terrorism (within the meaning of section 1 of the Terrorism Act 2000 ), money laundering, and the production and supply of illicit drugs; countries subject to sanctions, embargos or similar measures issued by, for example, the European Union or the United Nations; countries providing funding or support for terrorism; countries that have organisations operating within their territory which have been designated— by the government of the United Kingdom as proscribed organisations under Schedule 2 to the Terrorism Act 2000 , or by other countries, international organisations or the European Union as terrorist organisations; countries identified by credible sources, such as evaluations, detailed assessment reports or published follow-up reports published by the Financial Action Task Force, the International Monetary Fund, the World Bank, the Organisation for Economic Co-operation and Development or other international bodies or non-governmental organisations as not implementing requirements to counter money laundering and terrorist financing that are consistent with the recommendations published by the Financial Action Task Force in February 2012 and updated in June 2019.

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Source: legislation.gov.uk · retrieved 2026-09-04