Proliferation financing
Proliferation financing is the provision of funds or financial services to support the development, production, or acquisition of weapons of mass destruction — including nuclear, chemical, biological, and radiological weapons. Following the 2022 update to MLR 2017, regulated businesses including accountants are required to include proliferation financing risk in their firm-wide risk assessments.
most accountancy clients present no proliferation financing risk. However, firms with clients involved in defence, dual-use goods, or international trade with sanctioned states should include a specific proliferation assessment in their risk documentation.
Other terms that go with Proliferation financing
In AML, risk assessment operates at two levels. A firm-wide risk assessment identifies the overall money laundering risks facing a practice — covering client types, services offered, geographies, delivery channels, and funding sources. A client risk assessment scores an individual client as low, medium, or high risk and determines what level of due diligence to apply.
Terrorist financing is the provision or collection of funds with the intention or knowledge that they will be used, in whole or in part, to carry out a terrorist act. Unlike money laundering — where the underlying funds are criminal in origin — terrorist financing can involve legitimately sourced money. Both money laundering and terrorist financing are covered by MLR 2017 and the Terrorism Act 2000.
Put Proliferation financing into practice with Certivus
Knowing the term is the first step. Certivus gives you the workflows — client intake, CDD, EDD, PEP and sanctions screening, audit-ready records — to apply it across every client.
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