Increasingly, financial crime regulators have been moving away from traditional ‘prescribed’ compliance to ‘risk-based’ approaches, which recognise that one-size does not fit all. Whilst this offers welcome flexibility in developing proportionate controls to mitigate risks, regulated entities are required to develop and maintain a framework for identifying, assessing, mitigating and managing risks, which is often subject to independent review.
Failure to develop and implement a comprehensive and effectively managed AML/CFT Program can expose organisations to financial crime risks and increase the likelihood of breaching AML regulations which can expose both organisations and the individuals that work for them to both civil and criminal penalties.
Do you know how to spot red flags? Do you know whether your approach to risk assessment is compliant?