Customer Risk Assessment Program
Customer Risk Assessment Program Detailed Illustration
All the DNFBPs must identify, review, and understand the Money Laundering/Terrorism Financing risks to which they are exposed. The Customer Risk-Based Assessment is carried out to ensure that adequate information is collected from the prospective customer before providing services/goods. It will help the organisation understand if the associated risks are within its appetite. Read more about risk-based approach in AML Compliance.
Customer Risk Assessment is based on various factors like:
- Type of transaction/products/services
- Delivery Channel
- Place of Business
- Mode of payment
- Source of Funds
- Customer Profile
The risk assessment must be carried out periodically as per the policy set forth by the organisation.