AML Business Risk Assessment
AML Business Risk Assessment
The Prevention of Money Laundering Act, 2002 (PMLA) mandates that the regulated entities identify the money laundering risk exposure to effectively mitigate such risks. Thus, performing the AML business risk assessment is critical to identify the risks the entity is vulnerable to and accordingly design the AML policy, procedures, and controls to eliminate or at least reduce the impact of these risks.
Business risk assessment lets you identify the various threats to your business. These threats may be from customers, transactions, geographies, products/services, and delivery channels. Identifying and evaluating risk categories help you make plans to reduce their impact.
Protect your business from money laundering threats with AML India’s detailed AML business risk assessment.
AML Business Risk Assessment Process
1. Understanding the business
The first step is to understand the business of the client. We list down your:
- Products/Services you offer
- Countries of your operations and your customers Customer base
- Employees
- Types of transactions
- Delivery channels
- Business associates and relationships with third parties
2. Identifying risk scenarios
Now, we identify the risks associated with each of these factors to your business.
- We study the types of customers and their businesses to see what possible risks your business can have. Like, as the risk of associating with Politically Exposed Persons (PEPs), cash-intensive businesses, non-residents, etc.
- We evaluate your products and services to see the potential money laundering and terrorism financing threats. Like cash services, virtual currencies, online account opening services, etc.
- We review the geographies where you have your operations to see if those countries are at high risk. Like countries with high rates of financial crimes, border countries, sanctioned countries, etc.
3. Risk classification and impact analysis
Now we analyze the likelihood of these risks and their impact on your business into High, Medium, or Low.
We assess the impact of each risk to know the threats to your business and the consequences they may have on your business. You can prioritize these threats based on their impact on your business.
4. Defining controls and Monitoring
Based on analysis of the impact on the business, we help you develop the relevant systems and controls to mitigate them. You can define policies, procedures, and frameworks to fight these money laundering threats. Continuous monitoring of risks and their controls is critical to safeguard your business from financial crimes, as the risks may increase or decrease over time and so the overall business risk.
How can AML India assist you with AML Business Risk Assessment?
AML India is an expert provider of AML compliance services in India. Our experts are adept at assessing the money laundering and terrorism financing risks of companies in all sectors. We help you with an effective, easy-to-implement, and cost-efficient risk assessment approach.
Not only the approach but also conduct the assessment to generate insightful results for you. Along with identifying risks, we categorize them and rank them for prioritization.
Not only the approach but also conduct the assessment to generate insightful results for you. Along with identifying risks, we categorize them and rank them for prioritization. We help you identify inherent and residual risks related to customers, products, services, delivery channels, geographies, and transactions.
The businesses can know their risk exposure and apply appropriate policies and controls to lessen such risks and keep them within the limits of their risk appetite.
We help you identify inherent and residual risks related to customers, products, services, delivery channels, geographies, and transactions.
The businesses can know their risk exposure and apply appropriate policies and controls to lessen such risks and keep them within the limits of their risk appetite.
