A financial institution is designing an Enterprise-Wide Risk Assessment (EWRA). According to the Wolfsberg Group's risk-based approach to AML, an effective EWRA should:

The correct answer is B. Include appropriate measures and controls to mitigate money laundering risks stemming from. An Enterprise-Wide Risk Assessment (EWRA) helps financial institutions identify and mitigate money laundering risks. Wolfsberg Group and FATF emphasize that an EWRA should focus on higher-risk customers, products, and geographies, ensuring appropriate controls are in place.

AML/CFT Compliance Programs

Question

Options

AUse a framework provided by a third-party vendor and used by other FIs in the jurisdiction.
BInclude appropriate measures and controls to mitigate money laundering risks stemming from
CFocus on understanding the risks presented by new clients within the assessment period and the
DFocus on the inherent risk in the FI's product and service offerings and the controls to mitigate

How the community answered

(31 responses)

A
13% (4)
B
81% (25)
C
3% (1)
D
3% (1)

Explanation

An Enterprise-Wide Risk Assessment (EWRA) helps financial institutions identify and mitigate money laundering risks. Wolfsberg Group and FATF emphasize that an EWRA should focus on higher-risk customers, products, and geographies, ensuring appropriate controls are in place.

Topics

#EWRA#Wolfsberg Group#risk-based approach#inherent risk controls

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