1. Business Risk Assessment (BRA)
Companies must identify and evaluate money laundering and terrorist financing risks within their operations.
- Purpose: Helps businesses detect vulnerabilities and implement preventive measures against financial crimes.
- Risk Factors: Includes customer transactions, geographic exposure, and industry-specific risks.
- Regulatory Compliance: Businesses must align their risk assessments with national AML/CFT regulations.
2. Customer Risk Profiling (CRP)
Businesses must segment and categorize clients based on their risk level (low/medium/high).
- Risk Categories: Customers are classified based on transaction patterns, source of funds, and geographic exposure.
- Enhanced Due Diligence (EDD): High-risk clients require additional verification and monitoring.
- Ongoing Monitoring: Businesses must continuously assess customer risk to prevent financial fraud.
3. Ongoing Risk Review
Companies must conduct regular updates and reviews of their risk framework to meet regulatory expectations.
- Periodic Assessments: Businesses must update risk frameworks based on new regulations and emerging threats.
- Compliance Standards: Companies must follow global AML/CFT guidelines to ensure effective risk management.
- Audit Readiness: Regular reviews help businesses stay prepared for regulatory audits and inspections.