Why is taking a risk-based approach to Anti-Money Laundering (AML) so important?

A risk-based approach to AML is key to an effective compliance program.<br/><br/>

Financial Institutions face an expanding spectrum of money launder threats, and modern financial criminals have a range of tools at their disposal to avoid the countermeasures put in place to stop them. Accordingly, to balance cost and efficiency needs with compliance obligations, financial institutions must be able to respond to threats on a contextual basis. The most effective way to achieve this objective is to take a risk-based approach, meaning an AML program tailored to the individual levels of risk exposure that each customer presents.