Customer Risk Assessment

All the DNFBPs must identify, review, and understand the Money Laundering/Terrorism Financing risks to which they are exposed. The Customer Risk-Based Assessment is carried out to ensure that adequate information is collected from the prospective customer before providing services/goods. It will help the organisation understand if the associated risks are within its appetite. Read more about risk-based approach in AML Compliance.

Customer Risk Assessment is based on various factors like: 

• Type of transaction/products/services
• Delivery Channel
• Place of Business 
• Mode of payment
• Source of Funds
• Customer Profile

The customer risk assessment must be carried out periodically as per the policy set forth by the organisation.