Risk-based approach (AML)

Roles that need it

• AML Analyst
• Compliance Officer
• KYC Analyst
• Regulatory Consultant (Banking)
• Risk Advisory Consultant

Skills it belongs to

• Anti-money laundering regulation
• Risk judgment and escalation instinct

Related concepts

• Customer risk ratingA customer risk rating is the score or category, such as low, medium or high, that a firm assigns to each customer for money laundering and terrorist financing risk. It combines factors on customer, product, channel and geography, and sets the depth of due diligence and the frequency of reviews.
• CDD (Customer Due Diligence)Customer due diligence is the legal set of measures an obliged entity must apply to identify and verify a customer and its beneficial owners, understand the purpose of the relationship and monitor it on an ongoing basis. Its intensity follows risk: simplified, standard or enhanced.
• EDD (Enhanced Due Diligence)Enhanced due diligence is the set of additional customer due diligence measures required for higher-risk situations, such as politically exposed persons, high-risk third countries, cross-border correspondent relationships and unusual transactions. It typically includes source of wealth and funds checks, senior management approval and closer monitoring.
• FATF (Financial Action Task Force)The Financial Action Task Force is the intergovernmental body, created in 1989, that sets the global standards on anti-money laundering, counter-terrorist financing and proliferation financing through its 40 Recommendations. It evaluates countries in mutual evaluations and lists jurisdictions under increased monitoring.

Sources

• The FATF Recommendations, Financial Action Task Force (external site) accessed 31 Oct 2026
• Regulation (EU) 2024/1624 (Anti-Money Laundering Regulation), EUR-Lex (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.