The Research On Self-Assessment Of Money Laundering Risk In Commercial Banks

A large number of money laundering cases and regulatory practices show that commercial banks face higher risk of money laundering than securities,insurance and designated non-financial businesses and professions.However,because of the insufficient attention paid by commercial banks to the risk assessment of money laundering,the serious shortage of assessment personnel and the lack of comparative mechanism between industries,risk assessment tools and results can not be applied effectively.At the same time,the scarcity of regulatory resources makes it impossible for regulators to invest sufficient resources to carry out long-term and sustained money laundering risk assessment of commercial banks.Therefore,it is of practical significance to conduct a research on an index system suitable for commercial banks to carry out self-assessment of money laundering risk.Combining theoretical study and practical work experience,this paper expounds on the realistic background and theoretical significance of this research,provides an in-depth interpretation of money laundering risk and risk assessment and reviews the history of the study and application of money laundering risk assessment based on relevant literature at home and abroad.Secondly,in accordance with the risk assessment process,this paper analyses money laundering practices of 106 typical cases in a great many public cases of money laundering and its upstream crimes and conducts a systematic identification of money laundering risk in commercial banks.Thirdly,this paper reviews the methods used in money laundering risk assessment in academia and community of practice.On the basis of that and in accordance with the principle of "indexing risk and quantifying indicators",an index system for self-assessing money laundering risk in commercial banks is provided.Then this paper develops an assessment model after experts were invited to weight indicators and consistency testing and data standardization processing were conducted in EXCEL.Further,this paper selects a joint-stock bank and a local corporate bank in Zhangzhou to carry out simulation assessment.Finally,given the current situation of self-assessment of money laundering risk in China's banking industry,this paper presents countermeasures and advice to improve management.The assessment shows that local corporate bank outlets are densely distributed,so they are at a higher risk exposure to money laundering and should focus on guarding against compliance risk.Meanwhile,the distribution of joint-stock bank outlets is sparse,but they are mainly distributed in the economically developed areas,facing a higher degree of risk of money laundering,and should focus on guarding against customer risk.