Risk Based Approach
The RBA is an overarching requirement since the 2012 FATF Recommendations for an effective implementation of all AML/CFT measures recommendations. The Belgian Financial Intelligence Unit has released various sector-based guidance reports for industry targeted risk-based approaches.
What is a Risk-Based Approach?
A risk-based approach to compliance is a strategy where businesses and organizations evaluate their potential for breaking laws, regulations, and policies and then prioritize their efforts to do so. In other words, it's a strategy that concentrates resources in areas with the greatest non-compliance risk.The risk-based strategy entails locating and evaluating the risks connected to company ventures, goods, services, and client interactions. The complexity of the transaction, the type of consumer, and the location of the firm may all be considered during this evaluation. Controls and monitoring protocols are set up after hazards are discovered to manage and mitigate them.
What are the benefits of implementing a Risk-Based Approach?
The RBA process allows you to identify potential high risks of money laundering and terrorist financing so to focus and develop strategies to mitigate them.The underlying principle of the RBA is to focus the means (your resources) where they are most needed (your needs) to manage risks within your tolerance level.
- PrioritisationNo
- Operational CostsHigh
- Reaction speedSlow
- Human ResourcesHigh
- PrioritisationYes
- Operational CostsSmall
- Reaction speedFast
- Human ResourcesLow
How can Pideeco help you with Risk Based Approach?
Our decade-long experience in compliance and the financial sector can help your company to:- Assess your current RBA practices and create a gap analysis together with a mitigating action plan.
- Draft or improve your company’s policies and procedures to include RBA.
- Find ways to implement RBA in your company’s compliance processes.
- Train staff members on all topics related to RBA.
Let us know how we can help! We'll get back to you lightning quick!
You'd rather talk face to face? Complete the form and schedule a meeting
The financial crisis of 2008 led the European Union to adopt new rules to inc...
No matter the area, accidents are sometimes inevitable. Effective procedures followin...
The Risk-Based Approach (RBA) is a methodology for prioritizing a company'...
Adverse media, or negative news, screening is an essential process for financial inst...
What is a Compliance Risk Assessment?A Compliance Risk Assessment (CRA) is the identi...
Good corporate governance is essential to support business growth. Good governance pr...
Continuous business monitoring and reporting can save time and resources while improv...
Most financial institutions agree that we live in an ever more complex regulatory lan...
What is benchmark regulation?Following the Libor (London Inter-bank Offered Rate) sca...
Compliance, with the applicable legal framework, depends on the action plan t...
In many nations, it is necessary to identify UBOs (Ultimate Beneficial Owners) to com...
What are policies and procedures?Policies and procedures are the backbone of a compan...
The integrity of a company is important and can be strengthened by having well-define...
We'll present you the technology to stop money laundering and terrorist financing
Central Compliance is the organization of all the compliance monitoring and controlling the professional activities of a given business or company thr...
Return to central compliance
On 24 September 2019 the European Court of Justice (ECJ) released a preliminary decision according to which Google is not bound to apply the "right to be forgotten" or "de-referencing" globally. Google preliminary ruling caseIn May 2015, the French authority for dat...
Read more Author What else ?