Effective Risk Management in Anti-Money Laundering
Effective Risk Management in Anti-Money Laundering does not have a mandatory component as the organisation determines how to deal with the various money laundering risks it faces.
However, money laundering risk management may have to deal with both mandatory and non-mandatory elements.
Risk management is used to prioritise the compliance risks.
Risk management techniques are used to prioritise the response to the obligations in terms of control procedures and processes, levels of monitoring and reporting requirements.
Risk management involves:
- the identification of different types of risk
- assessing the impact of these risks
- determining the risk appetite of the organisation
- putting in place risk management procedures and controls.
Risk management does not have a mandatory component as the organisation determines how to deal with the various risks it faces. However, risk management may have to deal with both mandatory and non-mandatory elements.
Risk management is used to prioritise the compliance risks.
Risk management techniques are used to prioritise the response to the obligations in terms of control procedures and processes, levels of monitoring and reporting requirements.
Compliance
- Compliance is about meeting obligations, which in this case are mandated by the AML Act.
- Compliance is about meeting obligations that may have a mandatory component.
- All compliance risks must be dealt with.
- Compliance identifies all the obligations an organisation has.
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