AML Risk Assessment & Written Procedures

Where a business has obligations under the Money Laundering Regulations (MLR), they must use a risk-based approach to identify, assess and prevent money laundering. Carrying out an AML Risk Assessment involves several steps, which can include (but are not limited to): –

  • Identifying the money laundering risks relevant to your business
  • Completing a company-wide risk assessment which includes areas such as delivery channels, transactions, products/services, customer behaviour etc
  • Assessing the risks associated with your customers

AML Risk Assessment Template

Using a risk assessment template can build on existing AML written procedures and can save time and resources. The risks posed by money laundering and terrorist financing must be identified and recorded so that they can be mitgated.

An AML risk assessment and written procedures help a business to: –

  • Identify where the business is vulnerable to money laundering and terrorist financing
  • Prepare, maintain, and implement a written policy statement, controls, and procedures to show how the business manages the risks, as identified through any risk assessment
  • Review and update policies, controls, and procedures to reflect changes to the risks faced by the business
  • Provide training and guidance to all employees on the identified risks and how to effectively implement the policies and controls and to monitoring the risks and outcomes
  • Ensure that adequate resources, funds, and systems are in place to support the controls needed to identify, assess, and manage risks
  • Monitor the effectiveness and adequacy of the Company’s policies, controls and procedures and make improvements where required
  • Ensure accurate and adequate record keeping and notifications