Jurisdiction Risk

Jurisdiction Risk
The risk that arises when operating in a foreign jurisdiction. In recent times, jurisdiction risk has focused on banks and financial institutions who are exposed to the risk that some of the countries where they operate may be high-risk areas for money laundering and terrorism financing.

Jurisdiction risk can also refer to when laws unexpectedly change in a jurisdiction an investor has exposure to.

Jurisdiction risk is generally believed to be higher in countries that have either been designated as non-cooperative by the Financial Action Task Force, or have been identified by the U.S. Treasury as requiring special measures due to concerns about money laundering or corruption. Because of the punitive fines and penalties that can be levied against a financial institution that is involved (even inadvertently) in money laundering or financing terrorism, most organizations have specific processes to assess and mitigate jurisdiction risk.


Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Jurisdiction — In law, jurisdiction (from the Latin ius, iuris meaning law and dicere meaning to speak ) is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and,… …   Wikipedia

  • Risk-return spectrum — The risk return spectrum is the relationship between the amount of return gained on an investment and the amount of risk undertaken in that investment.fact|date=September 2007 The more return sought, the more risk that must be undertaken.The… …   Wikipedia

  • Auto insurance risk selection — is the process by which vehicle insurers determine whether or not to insure an individual and what insurance premium to charge. Depending on the jurisdiction, the insurance premium can be either mandated by the government or determined by the… …   Wikipedia

  • Security Risk Certificate — A New Zealand legal process whereby a suspected security risk can be incarcerated prior to expulsion from the country.A Security Risk Certificate is based on unchallengeable “classified security information” (Immigration Act 1987 s 114B(1)) –… …   Wikipedia

  • Specified risk material — (SRM) is the general term designated for tissues of ruminant animals that transmit BSE and other TSE prions. These can include brains, eyes, spinal cord, and other organs. The exact definition varies by jurisdiction. BSEThe BSE infective agent… …   Wikipedia

  • National Disaster Risk Reduction and Management Council — National Disaster Risk Reduction Management Council Pambansang Tanggapan para sa Pagtugon ng Sakuna Agency overview Formed October 19, 1970 Superseding agency National Disaster Coordinating Council Jurisdiction Disasters Headquarters …   Wikipedia

  • Know your customer — (KYC) is the due diligence and bank regulation that financial institutions and other regulated companies must perform to identify their clients and ascertain relevant information pertinent to doing financial business with them. In the USA, KYC is …   Wikipedia

  • Dynamic financial analysis — Key Uses Business mix Reinsurance Asset Allocation Profitability Solvency Sensitivity Dependency Elements …   Wikipedia

  • Commodity Futures Modernization Act of 2000 — The Commodity Futures Modernization Act of 2000 (CFMA) is United States federal legislation that officially ensured the deregulation of financial products known as over the counter derivatives. It was signed into law on December 21, 2000 by… …   Wikipedia

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”