Which of the following are part of a risk-based approach? (Select Three.)

The correct answer is A. Determining detailed risk profiles for customers based on their activities and relationships C. Choosing and applying effective controls that align with the identified risk levels D. Performing a comprehensive risk assessment to identify customer, transaction, and geographic. A risk-based approach is central to AML/CFT programs and includes: A: Creating detailed risk profiles for customers based on their behaviors and connections. C: Applying controls that are tailored to the actual risk (not a one-size-fits-all approach). D: Performing a thorough…

AML/CFT Compliance Programs

Question

Options

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

How the community answered

(37 responses)

A
81% (30)
B
8% (3)
E
11% (4)

Explanation

A risk-based approach is central to AML/CFT programs and includes: A: Creating detailed risk profiles for customers based on their behaviors and connections. C: Applying controls that are tailored to the actual risk (not a one-size-fits-all approach). D: Performing a thorough risk assessment, considering customer, transaction, and geographic "A risk-based approach involves risk profiling, tailored controls, and comprehensive risk assessment across key risk factors."

Topics

#risk-based approach#risk profiles#risk assessment#resource allocation

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