Which CRR risk factor category is listed as part of CRR risk factors?

• A. Geographic (Correct)
• B. Customer
• C. PEP Status
• D. SAR History

Answer: (A)

In CRR (Customer Risk Rating) assessment, risk factors are grouped into categories that help gauge overall risk. Geographic risk is a fundamental category because the location of a customer or their operations strongly influences potential risk—different countries have varying levels of corruption, regulatory enforcement, and exposure to money laundering. By classifying geographic risk separately, programs can apply appropriate controls or enhanced due diligence to customers tied to higher-risk jurisdictions.

Other items like who the customer is, whether they’re a PEP (politically exposed person), or any prior SAR history are important indicators used within the broader risk assessment, but they aren’t the explicit geographic risk category in the standard CRR taxonomy. Therefore, geographic risk is the best choice as a listed CRR risk factor category.