Anti-Money Laundering Compliance Programs
AMLAWARE | Risk-Based Approach
AMLAware International – Anti-Money Laundering compliance training programs meeting regulatory requirements for insurance companies, the financial services industry, and the banking sector worldwide.
Anti-money laundering, training, training program, training programs, money laundering, insurance, finances, financial industry, banking sector, international, international anti-money laundering
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Risk-Based Approach

17 Jun Risk-Based Approach

Posted at 20:54h in by Samantha DeMott
Topic Progress:

Customer Due Diligence (CDD) in Hong Kong, which includes ongoing monitoring, follows a risk- based approach (RBA).

  • The purpose of CDD is not to prevent the company from doing business with the customer, but to help effectively assess and manage the risk of money laundering.
  • The risk-based-approach requires insurers to undertake enhanced due diligence (EDD) measures for customers that are assessed as being at higher risk for money laundering or terrorist financing.
  • EDD measures are designed mitigate potential risk associated with certain types of higher-risk customers and/or when other potential red flags are identified.
  • Where the risk associated with a customer is assessed to be lower, the insurer may take simplified CDD measures.