What is risk-based technique?

Singapore
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What is risk-based technique?

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A Risk-Based Technique adopted by financial institutions and business entities in Anti-Money Laundering (AML) compliance is commonly referred to as a Risk-Based Approach (RBA) that involves:

  • Identifying the inherent risk to the business or institution
  • Defining business or institution’s risk appetite
  • Implementing proportionate risk mitigation measures
  • Determining residual risk or net exposure
  • Periodic review of the Risk-Based Approach adopted by the business or financial institution

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