Which of the following are part of a risk-based approach? (Choose three.)

The correct answer is A. Performing a comprehensive risk assessment to identify customer, transaction, and geographic C. Choosing and applying effective controls that align with the identified risk levels D. Determining detailed risk profiles for customers based on their activities and relationships. A risk-based approach involves conducting a comprehensive risk assessment, applying controls that match the identified risk levels, and creating detailed customer risk profiles to focus monitoring and resources where they are most needed to mitigate financial crime risks…

AML/CFT Compliance Programs

Question

Options

APerforming a comprehensive risk assessment to identify customer, transaction, and geographic
BFocusing monitoring primarily on previously flagged customers while using standard controls for
CChoosing and applying effective controls that align with the identified risk levels
DDetermining detailed risk profiles for customers based on their activities and relationships
EAllocating resources equally across all customer segments to ensure fairness

How the community answered

(25 responses)

A
72% (18)
B
8% (2)
E
20% (5)

Explanation

A risk-based approach involves conducting a comprehensive risk assessment, applying controls that match the identified risk levels, and creating detailed customer risk profiles to focus monitoring and resources where they are most needed to mitigate financial crime risks effectively.

Topics

#risk-based approach#risk assessment#customer risk profiling#control effectiveness

Community Discussion

No community discussion yet for this question.

Full CAMS Practice