What are the requirements of risk-based approach?

Singapore
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What are the requirements of risk-based approach?

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The Risk-Based Approach (RBA) is the pillar of the Anti-Money Laundering (AML) compliance program of a business or institution. It includes the following requirements:

  • Assessing the Money Laundering (ML), Terrorism Financing (TF) and Proliferation Financing (PF) risk exposure of the business or institution through conducting an Enterprise-Wide Risk Assessment and Customer Risk Assessments
  • Identifying risk control and mitigation measures based on the ML/TF/PF risks exposure to such business or institution
  • Forming and implementing Internal AML Policies, Procedures and Controls (IPPC)
  • Monitoring the ML/TF/PF risks on an ongoing basis
  • Record-keeping of ML/TF/PF risk assessments

To understand RBA in detail, check out our blog here: