What are Risk Categories?
Risk Categories break down your organisation’s overall risk into different areas. These categories help assess where your business may be exposed to money laundering or terrorism financing risks.
Risk categories explained:
- Customer Risk
The risk associated with the type of clients you work with - Product/Service Risk
The risk based on the products or services you offer - Delivery Risk
The risk related to how your services are delivered (e.g., online vs in-person) - Geographic Risk
The risk based on the locations you operate in or deal with
How it works:
Each category contributes to your overall risk score, which determines your overall risk rating.
What to do:
👉 Review each category carefully when setting up your AML program
💡 Tip: Keep these updated as your business model or customer base changes
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