Key factors for Customer Risk Assessment under AML regulations

AML Regulations in UAE provide for adopting a Risk-Based Approach to mitigate financial crimes, i.e., the higher the ML/FT risk, the stronger the AML controls to be deployed. Thus, it is essential to categorise every customer from their ML/FT risk quotient to effectively detect and prevent such risks.

The companies need to factor in a bundle of risk parameters to create customers’ AML risk profiles, such as the geographies they are hailing from, their legal structure, customers’ behavioral traits, etc. To help you efficiently assess the ML/FT risk posed by each of your customers (as Low, Medium, High or Unacceptable), we have designed an infographic illustrating the factors to be considered to perform Customer Risk Assessment from an AML perspective.

AML UAE is committed to assisting Financial Institutions, VASPs and DNFBPs in detecting and mitigating the money laundering/terrorism funding risks by offering end-to-end AML Consultancy services, including designing Customer Risk Profiling processes for the company and extending managed Customer Due DIligence support.