The Systematic Integrity Risk Assessment (SIRA) is an essential process for financial institutions, mandated by laws like the Prevention of Money Laundering and Financing of Terrorism Act (Wet ter voorkoming van witwassen en financieren van terrorisme (Wwft)). SIRA plays a pivotal role in identifying, assessing, and managing integrity risks, including money laundering, terrorist financing, and circumvention of sanction regulations.
SIRA encompasses a comprehensive approach to risk assessment, extending beyond the Wwft's scope. It includes analyzing various integrity risks and establishing a risk management vision and strategy. Regulators like De Nederlandsche Bank (DNB) place special emphasis on SIRA, scrutinizing several key elements such as its recency, scope, risk scenarios, and control measures.
Conducting a SIRA involves several critical steps:
SIRA is not a one-time activity but a cyclical process requiring periodic reassessment and adjustment in line with changes in the business environment and operational dynamics.
A key aspect of SIRA is independent monitoring by the compliance function, ensuring unbiased evaluation and reporting of integrity risks.
SIRA is a process financial institutions use to systematically identify, assess and manage integrity risks such as money laundering, terrorist financing and sanctions breaches.
SIRA is essential for ensuring that financial institutions comply with laws like the Wwft and that they can effectively identify and manage their integrity risks.
Key steps include preparation, risk identification, risk assessment, analysis of control measures and continuous monitoring and follow-up.
SIRA is an ongoing and cyclical process that requires regular updates and adjustments to address evolving risks, regulatory expectations and business changes.
Yes, institutions can access specialized SIRA training and consultancy services to enhance the quality and effectiveness of their integrity risk assessments and overall risk management approach.