What is a Risk Assessment?
A money laundering and terrorism financing risk assessment allow a business to identify and assess the level of risk posed on that business, daily. Conducting an ML/TF risk assessment is a critical part of the AML/CTF program.
A business will never have zero ML/TF risk. There will always be a level of risk and this risk is referred to as the inherent risk to the business.
NameScan Free Risk Assessment
NameScan provides a free risk assessment that allows you to understand the current ML/TF risk posed to your business. This assessment will take you about 15 minutes to complete and is completely free. This self-assessment asks questions based on your current AML/CTF program, under current legislation. Once completed you will receive a report outlining the risk of your current processes, allowing you to analyse and modify your current AML/CTF program.
If you are interested in a more comprehensive risk assessment, with the opportunity to consult with an ACAMS graduate please get in touch with us using the link below.Talk to a Consultant
Why Conduct a Risk Assessment?
Conducting a risk assessment allows a business to identify weakness in their AML/CTF program. This is a key step to comply with AML/CTF regulations, as they change constantly to keep pace with new vulnerabilities arising within the industry.
When conducting a risk assessment there are four elements to consider:
- The type of customer the business engages with
- The type of product or service the business provides
- How the business provides that service or product
- The domestic and overseas jurisdictions the business operates within
A risk assessment needs to be conducted in a scheduled manner. This will allow the business to identify their ML/TF risk regularly and implement a protocol to limit the risk as best possible.
Reviewing Your ML/TF Risk Assessment
The methodology used to conduct the risk assessment must be flexible and able to adapt to the changes that affect your risk level. To ensure a businesses risk assessment is current, the ML/TF risk must be reassessed whenever the following occurs:
What are the Steps
to Implementing an ML/TF Risk Assessment?
There are key steps that a business must follow when looking at implementing a risk assessment program.