Assessing Risk and Developing a Risk Scoring Model
legal requirements, and supplement with FATF risk-based controls.
Controls should be strong enough to counter the risk – low risks
can be managed with minimal controls, high risk areas need robust
controls. Controls include: verifying the identity of customers
(KYC), customer due diligence (CDD), suspicious activity monitoring
and economic sanctions screening.
based approaches are more:
useful because risks vary across geographical areas, customers,
products and delivery mechanisms, and over time.
because companies know better than regulators how to mitigate money
because risk based approaches allow a common sense and intelligent
rather than check-box approach.
Next Topic: Levels of risk
Previous Topic: Anti-Money Laundering Compliance Program
Get the Book & Pass First Time!
Includes all the study notes, the mock exam and detailed explainations of the answers