Financial institutions are required to assess high risk clients for the money laundering risk they present and have to carry out enhanced due diligence on these customers. The level of risk a client presents depends on many factors, and it is up to the financial services firms to make an assessment of this risk. But there are some common examples of high risk customers which financial services firms need to be more careful with. We'll have a look at three types of high risk customers in detail, politically exposed persons, PEPs, charities and money changers. However, this is not an exhaustive list. There are many other customer types who may be rated high risk depending upon the financial services firm's risk appetite such as arms dealers and arms manufacturers, or gaming and gambling enterprises. Arms dealers, and casinos have deep connections to the underworld. And casinos can additionally be useful to criminals if they accept cash payment for gaming chips without inquiring about the origins of the cash. But remember, high risk customers can be clients of the firm if the firm can assure itself that the clients are not the bad guys through enhanced due diligence, it's worth noting that high risk customers are significantly different from prohibited customers. Prohibited customers are those that the firm's policy prohibits providing service to them. They are not given a financial crime risk rating because they cannot be onboarded in the first place. There are many different types of prohibited customers. These include sanctioned persons, persons blacklisted by financial regulators, persons who present an unacceptable level of reputation risk to the firm. For example, a company that has been frequently fined for environmental damage, such as the owner of a factory that has repeatedly discharged toxic waste into a waterway.