The purpose of this article is to highlight the importance of a risk-based approach to AML/CTF work within any firm, which should be part of the firms overall risk management framework. A proper risk-based approach should address relevant ML/TF risks in the business and ensure that preventive measures are commensurate to the risks identified. This will allow the firm to effectively direct resources in line with priorities and give the greatest risks the highest attention. A risk-based approach should be designed to allow the firm to establish relationships with potential customers, while effectively managing potential ML/CTF risks.
GRC Insight October 2020 – AML risk assessment, core principles and future demands