Customer risk assessment and management
An IT solution for the development of money laundering and terrorist financing risk scoring system. This IT solution, using a variety of ML/TF risk factors and features, helps a financial institution determine the risk level of its customer.
Using the risk-based approach and taking into account the level of customer risk, the results of an automated risk scoring system enable the financial service provider to:
- decide on establishing a business relationship with a customer,
- apply appropriate customer due diligence or measures to mitigate the ML/TF risks; or
- decide to terminate business relations in cases where the customer's ML/TF risks are not acceptable or manageable.
Regulatory framework
Regulations on the Establishment of Customer Due Diligence, Enhanced Customer Due Diligence and Risk Scoring System and Information Technology Requirements
The European Banking Authority Guidelines on customer due diligence and the factors credit and financial institutions should consider when assessing the money laundering and terrorist financing risk associated with individual business relationships and occasional transactions
