Evaluating risk for onboarding Crypto CFDs investment companies.
... by Yiannakis Papageorgiou
| Risk Factor | Low Risk (1) | Medium Risk (2) | High Risk (3) |
|---|---|---|---|
| Jurisdiction | Regulated (US, UK, EU, AU, SG) | Partially Regulated (UAE, HK, CA) | Unregulated (Offshore tax havens) |
| Regulatory Status | Fully Licensed | Pending/Lightly Regulated | No License, History of Regulatory Issues |
| Source of utility payments such as Rental Payments | Licensed, Transparent Profits | Speculative CFD Trading | Unknown or Suspicious Sources |
| AML/KYC Controls | Strong, Audited | Basic Compliance, Weak Enforcement | No AML Controls, History of Issues |
| Payment Method | Corporate Bank Transfer | Personal Bank Account | Crypto, Cash, Third-Party Transfers |
| Reputation | No Adverse Media | Some Concerns | History of Fraud, Hacking |
| Ultimate Beneficial Owners (UBOs) | Transparent, Reputable Owners | Complex Offshore Structures | Anonymous Owners, PEPs |
| Transaction Volume | Consistent Payments | Occasional Large Transfers | Large, Irregular Payments |
Low Risk (7-10 points): ✅ Approved with standard monitoring.
Medium Risk (11-16 points): ⚠️ Enhanced Due Diligence (EDD) required before approval.
High Risk (17+ points): ❌ Reject or impose strict compliance conditions.