Geo-Risk Assessment

Purpose

Assess risk levels associated with specific countries or jurisdictions for compliance and regulatory purposes. This tool evaluates political stability, regulatory environment, sanctions status, and other risk factors.

When to Use

• Evaluating business relationships with entities in specific countries
• Assessing compliance risk for international transactions
• Due diligence on foreign counterparties or investments
• Sanctions screening and embargo compliance
• Risk scoring for customer onboarding
• Regulatory reporting requirements

How to Use

The geo-risk tool analyzes countries and jurisdictions across multiple risk dimensions:

• Political Risk: Government stability, corruption levels
• Regulatory Risk: AML/CFT frameworks, compliance requirements
• Sanctions Risk: OFAC, EU, UN sanctions and embargos
• Economic Risk: Financial stability, currency volatility
• Operational Risk: Infrastructure, legal system reliability

Examples

High-risk jurisdiction analysis:

Entity: ABC Trading Company
Location: Country X
Risk Assessment: Evaluate jurisdiction risk for new business relationship

Multi-country risk comparison:

Entities: Regional subsidiaries in Countries A, B, C
Analysis: Compare relative risk levels for compliance prioritization

Transaction risk evaluation:

Transaction: $500K wire transfer to Country Y
Assessment: Evaluate destination country risk factors

Important Notes

• Risk levels are based on current sanctions lists, regulatory frameworks, and political conditions
• High-risk jurisdictions require enhanced due diligence procedures
• Risk assessments should be updated regularly as conditions change
• Consider both source and destination countries for cross-border transactions
• Factor in specific business activities and exposure levels
• Consult legal counsel for complex jurisdiction-specific requirements