The Money Laundering Risk Management Strategy Of JZ Bank

The fourth round of mutual assessment of China conducted by the Financial Action Task Force(FATF)in 2019 was over.The evaluation results showed that although domestic financial institutions could fully understand their anti-money laundering and anti-terrorist financing obligations,they did not fully understand the risks of money laundering,and some risk control measures they adopted did not match the status of money laundering risks faced by the institutions.Local legal person financial institutions occupied an important position in a certain area,both in terms of the number of customers and the amount of capital transactions.On the other hand,due to development restrictions,there were limited resources for anti-money laundering invested by local legal person institutions,and there were also some loopholes in the anti-money laundering system.Therefore,the research on the money laundering risk management of a local legal person institution,to help it establish a money laundering risk management system that adapts to its risk situation,has an important role in the institution's own stable operation,maintaining regional financial stability,and preventing and controlling regional money laundering risks.This paper takes JZ Bank as the research object,and combines the current status of JZ Bank's money laundering risk management.It mainly uses a combination of qualitative and quantitative research methods to conduct money laundering risk management research on it.According to the path of risk identification,risk assessment and evaluation results,the focus is on the risk assessment to fimd some of the risk factors it faced and some loopholes in the system and implementation level,and finally form a money laundering risk management strategy appropriate to its risk situation.Based on some risk factors exists in the current situation of JZ Bank's anti-money laundering work,this paper combines with the Measures for the Risk Management of Money Laundering and Terrorist Financing of Legal Person Financial Institutions issued by the central bank,established a JZBank money laundering risk assessment index system,the analytic hierarchy process is used to evaluate from the aspects of the inherent risks and the effectiveness of control measures.In the inherent risk assessment,the application of 50 four-level indicators from the perspective of business scale,country / region,customer(including occupation,industry),and business(including products,services,and delivery channels),and the final score was29.72 points,which is low risk;In the evaluation of the effectiveness of control measures,used 42 four-level indicators for evaluation from the dimensions of risk management strategy and framework,risk identification mechanism,risk control measures,and anti-money laundering work mechanism,etc.,the final score was 61.5 points,indicating that the control measures can manage and mitigate inherent risks to some extent,but many problems still need to be resolved.In the end,the corresponding risk measurement,the measurement matrix of risk assessment results,and the overall risk assessment result was B.Based on the results of the assessment,combined with the requirements of the Guidelines for the Risk Management of Money Laundering and Terrorist Financing of Legal Persons Financial Institutions(Trial),specific suggestions were finally made from the aspects of risk management framework,risk management strategy,risk management policies and procedures,information systems and data governance,internal inspection,audit,performance appraisal as well as reward and punishment mechanisms to further improve JZ Bank's money laundering risk management system and improve the effectiveness of money laundering risk management.