Low inherent risk is associated with factors that reduce the likelihood of money laundering or terrorist financing. Non-face-to-face contact at account opening is considered a higher-risk channel because it complicates identity verification and customer due diligence, increasing anonymity. This contrasts with factors like a stable domestic customer base, standard retail products, and no exposure to high-risk jurisdictions, which are all indicative of a lower inherent risk profile for an institution.

A. Normal retail domestic products are typically simple, well-understood, and pose a lower risk compared to complex products like private banking or correspondent banking.

B. Avoiding business with high-risk jurisdictions is a key risk mitigation factor, thus contributing to a lower, not higher, inherent risk profile.

D. A stable, domestic customer base is predictable and easier to monitor, representing a lower inherent risk than a rapidly growing or international one.

1. ACAMS. (2023). CAMS Risk Management (CAMS-RM) Study Guide. Chapter 2: The Elements of Risk, Section: "Inherent Risk Factors - Channels." The guide explicitly lists non-face-to-face relationships as a higher-risk delivery channel.

2. Financial Action Task Force (FATF). (2021). Guidance on Digital Identity. p. 12. This guidance discusses the risks associated with non-face-to-face customer identification and the need for enhanced measures.