What is an AML risk assessment? An anti-money laundering (AML) risk assessment will identify higher-risk areas within a business. The results of the AML risk assessment report will guide the development of AML/CFT policy, procedures and controls.
When undertaking an AML business risk assessment, there are certain areas across a business that must be included in the analysis. The primary risk areas across a business are considered to be the (a) Nature, size and complexity of business, (b) customer/client risks, (c) products/services that create transaction risk, (d) the method of how customers and clients conduct their business activity and (e) country risks.
For each of these five divisions, a business must document the AML/CFT risk analysis process that was followed. A risk rating should be provided for each division.
The results of the AML business risk assessment will guide the development of AML/CFT policies, procedures and controls. Where risk is higher, policies, procedures and controls are expected to be more robust.
AML360 is regulatory technology designed to meet obligations of anti-money laundering compliance. As an end-to-end solution, businesses can start developing or reviewing their AML/CFT compliance framework by undertaking a reliable AML/CFT business risk assessment. The analysis examines key risk divisions, including the (a) Nature, size and complexity of business, (b) customer/client risks, (c) products/services that create transaction risk, (d) the method of how customers and clients conduct their business activity and (e) country risks.
The risk report will identify those areas across the business with higher exposure to the probability of facilitating. Money laundering or terrorism financing.
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