Jurisdiction Risk

Filed Under » ,
Dictionary Says

Definition of 'Jurisdiction Risk'

The risk that arises when operating in a foreign jurisdiction. In recent times, jurisdiction risk has focused on banks and financial institutions who are exposed to the risk that some of the countries where they operate may be high-risk areas for money laundering and terrorism financing.

Jurisdiction risk can also refer to when laws unexpectedly change in a jurisdiction an investor has exposure to.

Investopedia Says

Investopedia explains 'Jurisdiction Risk'

Jurisdiction risk is generally believed to be higher in countries that have either been designated as non-cooperative by the Financial Action Task Force, or have been identified by the U.S. Treasury as requiring special measures due to concerns about money laundering or corruption. Because of the punitive fines and penalties that can be levied against a financial institution that is involved (even inadvertently) in money laundering or financing terrorism, most organizations have specific processes to assess and mitigate jurisdiction risk.
Search results for

'Jurisdiction Risk'

  • Series 66 Study Guide - Remedies and Administrative Procedures ...

    http://www.investopedia.com/exam-guide/series-66/administrative-procedures/administrator-authority.asp
    ... Jurisdiction Jurisdiction comes down to where a securities transaction was made
    and whether a state Administrator has the authority to regulate the activity. ...

  • FDIC Reports Profitable Banking System

    http://stocks.investopedia.com/stock-analysis/2011/FDIC-Reports-Profitable-Banking-System-BAC-JPM-C-WFC-USB-XLF-KBE0906.aspx
    ... capital affects risk management; check out How Do Banks Determine Risk?) A look
    at ... The FDIC assigns a rating to each institution under its jurisdiction, as a ...

  • CFA Level 1 Study Guide - Ethics and Standards - Disciplining CFA ...

    http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/disciplining-members.asp
    ... Profitability Ratios; 7.4 Return on Investment Ratios; 7.5 Operating Efficiency
    Ratios; 7.6 Business Risk Ratios; 7.7 Financial Risk Ratios; 7.8 ...

  • Equity Stripping Leaves Creditors Empty-Handed

    http://www.investopedia.com/articles/mortgages-real-estate/09/equity-stripping-assets.asp
    ... Although every jurisdiction has its own specific regulations, to pass muster the
    loan must be ... Real Estate LLCs Owning rental real estate is a high-risk endeavor ...

  • Cover Your Company With Liability Insurance

    http://www.investopedia.com/articles/pf/08/CGL-insurance.asp
    ... policy, although they may be covered if they are permitted by the jurisdiction of
    the state in which the policy was issued. The amount of risk associated with ...

  • CFA Level 1 Study Guide - Alternative Investments - Alternative ...

    http://www.investopedia.com/exam-guide/cfa-level-1/alternative-investments/alternative-investment-valuation.asp
    ... Profitability Ratios; 7.4 Return on Investment Ratios; 7.5 Operating Efficiency
    Ratios; 7.6 Business Risk Ratios; 7.7 Financial Risk Ratios; 7.8 ...

  • CFA Level 1 Study Guide - Derivatives - Fundamental Differences ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/fundamental-differences-between-futures-forwards.asp
    ... Profitability Ratios; 7.4 Return on Investment Ratios; 7.5 Operating Efficiency
    Ratios; 7.6 Business Risk Ratios; 7.7 Financial Risk Ratios; 7.8 ...

  • Series 65 Study Guide - Remedies and Administrative Provisions ...

    http://www.investopedia.com/exam-guide/series-65/remedies-provisions/administrator-authority-actions.asp
    ... Administrator Authority and Actions. The Uniform Securities Act gives the state
    Administrator jurisdiction in all of the following instances: ...

  • Pocket Change Or Prison: The Galleon Hedge Fund Scandal ...

    http://financialedge.investopedia.com/financial-edge/1009/Pocket-Change-Or-Prison-The-Galleon-Hedge-Fund-Scandal.aspx
    ... Risk Vs. ... of several people saying things like, "I'm dead if this leaks," and "I'll
    be like Martha Stewart." Also, the US attorney with jurisdiction over Wall ...

  • CFA Level 1 Study Guide - Fixed Income Investments - International ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/international-bonds.asp
    ... Profitability Ratios; 7.4 Return on Investment Ratios; 7.5 Operating Efficiency
    Ratios; 7.6 Business Risk Ratios; 7.7 Financial Risk Ratios; 7.8 ...

Related Articles

Trading Center
Partner Links