What are the areas of risk-based approach?
A Risk-Based Approach (RBA)is be adopted in different areas of AML compliance, such as developing an AML compliance program that is proportionate to the assessed money laundering or terrorism financing risk or appointing a competent AML compliance officer for ensuring proper implementation of the Internal Policies, Procedures, and Controls (IPPC).
RBA is also adopted in other compliance measures, such as in Customer Due Diligence, conducting ongoing monitoring of transactions or business relationships, Politically Exposed Person (PEP) screening, Identification of beneficial owners, training, and timely reporting of red flags.
Check out this illustration to learn more about the areas in an AML framework where a Risk-Based Approach is adopted.