What is under a risk-based approach?

Singapore
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What is under a risk-based approach?

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The Risk-Based Approach (RBA) is the foundation of the Anti-Money Laundering (AML) compliance program of a business or institution under Singapore’s AML laws. The following components are under RBA:

  • Identifying and assessing the inherent Money Laundering (ML), Terrorism Financing (TF) and Proliferation Financing (PF) risks the business or institution faces
  • Defining the risk appetite of the business or institution, i.e., the degree and amount of ML/TF/PF risks that it can manage effectively
  • Deploying ML/TF/PF risk mitigation measures to reduce inherent risk
  • Assessing the residual ML/TF/PF risks, i.e., the leftover risks after AML control measures have been adopted by the Regulated Entity
  • Ongoing review of the RBA

To understand the RBA process in detail, check out our infographic here: