Jurisdictional Risk Scoring: Methodologies & Data Sources

‍Our jurisdictional risk scoring system provides a structured, data-driven assessment of money laundering (ML) and terrorist financing (TF) risks across different countries. Designed specifically for entities operating in the blockchain and cryptocurrency ecosystem, our approach consolidates multiple authoritative sources into a unified risk index.

This allows compliance teams, financial institutions, and Web3 projects to make informed decisions about cross-border transactions, regulatory exposure, and operational risk.Each country’s risk score is derived from verified data sources and does not reflect our subjective opinion. However, in cases where specific data is unavailable, we apply a contextual assessment based on comparative risk factors. This ensures that our scoring model remains comprehensive and adaptable to the evolving regulatory landscape.While our risk scores serve as a strategic guide, it’s essential for businesses to integrate them into their broader compliance frameworks.

Every organization has a unique risk appetite, which depends on jurisdiction-specific regulations, enforcement trends, and operational considerations. To further support nuanced decision-making, we offer a customizable risk scoring tool that enables businesses to adjust weightings based on their specific requirements.For an in-depth analysis, including jurisdictional breakdowns and risk narratives, users can access our full AML/CFT reports or refer to the underlying data sources.

‍Key Risk Indicators & Data Sources

‍Our methodology considers the following primary risk factors to assess jurisdictional ML/TF exposure:
1. Money Laundering & Terrorist Financing Risks
• Compliance with FATF Recommendations (40+9)
• FATF High-Risk & Non-Cooperative Jurisdictions
• US Money Laundering Threat Assessment
• Global Terrorism Financing Risk Indicators

2. International Sanctions Exposure
• US OFAC Sanctions Lists
• EU & UN Sanctions Programs
• Other key Regulatory Blacklists

3. Corruption & Governance Risks
• Transparency International’s Corruption Perceptions Index
• World Bank’s Governance Indicators

4. Illicit Financial Activity & Criminal Influence
• Global Initiative’s Organized Crime Index
• National & International Law Enforcement Reports

5. Resilience Against Financial Crimes
• Global Initiative’s Resilience Index
• National AML Infrastructure & Regulatory Maturity

6. Tax & Financial Opacity
• EU Tax Blacklist & Greylist
• OECD’s Tax Haven Classification
• Offshore Financial Center Registrations

7. Crypto-Specific Regulatory Risks
• Crypto AML enforcement actions & penalties
• Blockchain forensic insights on illicit flows
• Stablecoin & DeFi regulatory monitoring

Our risk intelligence platform is continuously updated to reflect changes in global enforcement, regulatory actions, and financial crime trends. By leveraging this data, blockchain enterprises, VASPs (Virtual Asset Service Providers), and compliance professionals can stay ahead of evolving risks and meet their regulatory obligations with confidence.

‍High-Risk Jurisdictions:

‍Certain jurisdictions remain high-risk due to critical gaps in their anti-money laundering (AML), counter-terrorism financing (CTF), and proliferation financing (PF) frameworks. The Financial Action Task Force (FATF) calls on its members—and urges global financial actors—to apply enhanced due diligence (EDD) when engaging with these jurisdictions.

In extreme cases, countermeasures may be necessary to safeguard the global financial system against exposure to illicit finance originating from these regions.

These jurisdictions, commonly referred to as the FATF “blacklist,” present an elevated level of financial crime risk:
• Democratic People’s Republic of Korea (DPRK)
• Iran
• Myanmar

Countries identified as having strategic AML/CFT/PF deficiencies but demonstrating a commitment to improvement are placed on the increased monitoring list—commonly known as the “grey list”:
• Algeria
• Angola
• Bulgaria
• Burkina Faso
• Cameroon
• Côte d’Ivoire
• Croatia
• Democratic Republic of Congo
• Haiti
• Kenya
• Lebanon
• Mali
• Monaco
• Mozambique
• Namibia
• Nigeria
• Philippines
• South Africa
• South Sudan
• Syria
• Tanzania
• Venezuela
• Vietnam
• Yemen

Jurisdiction Removed from Increased Monitoring

‍📌 Senegal has successfully addressed FATF’s concerns and has been removed from the grey list.What This Means for Blockchain & Crypto EntitiesFor crypto businesses, Web3 projects, and financial institutions, these FATF updates impact risk exposure, regulatory compliance, and onboarding policies.

Entities transacting with or operating in high-risk and grey-listed jurisdictions should:
✅ Implement enhanced due diligence (EDD) for counterparties in affected jurisdictions.
✅ Monitor regulatory developments to stay ahead of potential enforcement actions.
✅ Adjust transaction monitoring parameters to identify higher-risk blockchain activity.
✅ Evaluate on-chain exposure to wallets or entities operating from flagged regions.

We provide jurisdictional risk intelligence tailored to the crypto ecosystem, helping Web3 businesses navigate financial crime risks while ensuring compliance with global AML/CFT standards.📊

‍Need real-time FATF risk updates integrated into your compliance workflow?

‍Get in touch to explore customized risk scoring solutions for blockchain operations. 🚀


Research Sources:
‍
FATF General
‍
https://www.fatf-gafi.org/home/FATF

Mutual Evaluations
‍https://www.fatf-gafi.org/publications/mutualevaluations/

‍US State Department INCSR
‍https://www.state.gov/international-narcotics-control-strategy-reports/

‍Global Initiative Organised Crime Index
‍https://ocindex.net/

‍Transparency International
‍https://transparency.eu/

‍World Bank Governance Indicators
‍https://info.worldbank.org/governance/wgi/

‍IMF
‍https://www.imf.org/en/Publications/

UN Sanctions
https://www.un.org/securitycouncil/sanctions/information

‍OFAC Sanctions
‍https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information

‍EU Sanctions
‍https://sanctionsmap.eu/#/main‍