kyc-risk-rating

RISK-BASED APPROACH PRINCIPLE

The FATF Risk-Based Approach requires that AML/CFT measures be proportionate to the risks identified. Higher-risk customers receive Enhanced Due Diligence (EDD); lower-risk customers may receive Simplified Due Diligence (SDD) in some cases. Every customer must be assigned a risk rating and the rating must be reviewed periodically.

RISK SCORING FRAMEWORK — FOUR DIMENSIONS

Dimension 1: Customer Type Risk