The following recommendations for banks on how they can manage these risks are provided:
- Formalisation of a risk management framework to manage risks associated with receiving customer referrals from CSPs;
- CSP empanelment;
- Assessment of the level of ML/TF/PF risk arising from CSPs;
- Periodic and ongoing surveillance of CSPs; and
- CSP Dis-empanelment process.
Financial institutions should view the best practice guidance and take any appropriate action.