What are the types of Anti-Money Laundering risk?

UAE
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What are the types of Anti-Money Laundering risk?

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The types of anti-money laundering risks include:

  • Customer Related Risks: For example, if the customer is a politically exposed person, high net-worth individual, etc.
  • Geography Related Risks: For example, if a country is blacklisted or grey listed by the FATF
  • Products or Services Related Risks: For example, if the products are luxurious items, related to unregulated industries, etc
  • Transactions Related Risks: For example, if the transactions involve cash payments, high-value transactions, etc
  • Delivery Channel Related Risks: For example, if the instructions received are from a third party rather than the customer, or the customer refuses to meet face-to-face, etc

These risk factors should be considered during Customer Risk Assessment (CRA), Enterprise-Wide Risk Assessment (EWRA), etc.

To read more about these risks, watch our video on factors for AML EWRA here: