All DNFBPs must establish robust and effective Enterprise Risk Assessment policies, procedures, and controls to enhance the effectiveness of their AML Program. This approach helps in the following ways:
- Detecting risks faced by the enterprise/organization as a whole
- Identifying and outlining measures to mitigate associated and residual risks
- Highlighting any gaps in the current risk management approach
- Spotting opportunities for improvement
- Making informed decisions regarding the organization’s risk appetite
- Allocating AML resources efficiently
It is essential for DNFBPs to adopt an appropriate risk-based approach and prioritize actions based on quantitative data.
Check out our article on the causes of AML Program failures and familiarize yourself with key terms in AML/CFT Compliance Programs. The infographic on designing a successful Anti-Money Laundering Program provides valuable insights into key activities to perform.
The organization’s policy for managing enterprise risk should be reviewed periodically, incorporating new methods for risk mitigation based on changing factors. These updates should be documented, approved by senior management, and communicated to the relevant departments for implementation.
Find the Infographic here: