Apply a risk-based approach (RBA) to manage financial crime risks by assessing risks related to customers, products, and geography. Tailor compliance programs and enhance customer due diligence (CDD) accordingly.

Learning Objectives:

• Understand the core principles of a risk-based approach (RBA) and its importance in compliance and risk management.
• Learn how to implement an RBA to manage financial crime risks, including money laundering (ML), terrorist financing (TF), and fraud.
• Develop skills to assess and categorize risks based on customers, products, services, and geographic regions.
• Understand how to tailor compliance programs and internal controls according to the organization’s risk profile.
• Explore the role of regulatory guidelines, including FATF recommendations, in implementing an effective RBA.
• Learn how to enhance customer due diligence (CDD) processes using a risk-based approach.
• Master the process of continuous monitoring and updating risk assessments in response to emerging threats and regulatory changes.

Course Outline:

Introduction to the Risk-Based Approach (RBA):

• Definition and importance of RBA in regulatory compliance and financial crime prevention.
• Key global regulatory frameworks and guidelines for RBA (e.g., FATF, Basel III).

Risk Assessment Techniques:

• How to identify, assess, and categorize risks based on customer profiles, products, services, and geographic exposure.
• Steps for conducting a comprehensive risk assessment in financial institutions and non-financial businesses.

Tailoring Compliance Programs Using RBA:

• Adapting compliance measures to focus on higher-risk areas.
• Implementing risk-based internal controls, policies, and procedures.

Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) in RBA:

• Applying RBA principles in CDD and EDD processes.
• Identifying when to escalate from CDD to EDD for high-risk clients.

Continuous Monitoring and Risk Reassessment:

• Techniques for ongoing risk monitoring and how to adjust controls based on new risks.
• Keeping the RBA dynamic and responsive to evolving threats, regulatory updates, and business needs.

Regulatory Compliance and Reporting:

• Understanding reporting obligations and how to demonstrate the effectiveness of an RBA to regulators.
• Best practices for maintaining compliance while managing operational risks.

Case Studies and Best Practices:

• Real-world examples of risk-based approaches in action.
• Lessons learned from regulatory enforcement actions and compliance audits.

Duration:

2-3 Days (including case studies, practical exercises, and risk assessment workshops).

Level: Intermediate to Advanced

• Suitable for compliance officers, risk managers, AML professionals, and business leaders responsible for risk management.

Prerequisite:

Basic understanding of risk management principles and regulatory compliance frameworks.

Category:

• Risk Management/Compliance
• AML/CFT Compliance