Phase 1 Sector Risk Assessment – September 2018

Aim: To provide an update, for phase 1 reporting entities supervised by the DIA, on the money laundering/terrorism financing (ML/TF) risk faced by each sector, and the changes in sector risk ratings since the last assessment in 2011.

Outcome: Completing the module may help Reporting Entities (REs) to:

  • Understand the ML/TF risks faced by their sector;
  • Review and if appropriate, update the individual Risk Assessment, incorporating any new risks identified in the Sector Risk Assessment (SRA) and any change in sector risk ratings; and
  • Review the policies, procedures, and controls to manage and monitor ML/TF risks more effectively.

Abstract: In 2011, the DIA undertook the first risk assessment of the sectors it supervises, based on the limited information at the time. In 2018, the DIA updated this risk assessment taking into account information from the Financial Intelligence Unit’s National Risk Assessment, and the SRAs of the other supervisors of the Act – the Reserve Bank of New Zealand and the Financial Markets Authority. The DIA also considered national and international guidance documentation and typology reports. The SRA 2018 highlights, for each sector, the changes to the risk rating between 2011, and 2017, and describes its expectations of REs based on the information contained in the updated SRA.