Module 1 · Chapter 2

AML Risk Assessments: Firm, Client and Matter

Before a firm acts, it decides how risky the client and the job are. This chapter shows the three anti-money laundering risk assessments, and why a high rating sets the pace of the deal.

≈ 7 min read 8-question test

In this chapter

  • The three levels of risk assessment: the firm, the client and the matter
  • Why several risk factors together make Merranby’s purchase high risk
  • Why the timetable follows the checks, and how you write the assessment

2.1Risk assessment in one paragraph

A firm cannot check every client as hard as the riskiest one. So it first decides how risky each client and each job is, at three levels: the firm as a whole, the client, and the matter. The higher the risk, the closer the checks before any work starts. You write the assessment for Merranby’s purchase, and Helena, the partner who supervises you, signs it.

Key point

The risk decides how closely the firm checks. A high rating is not a finding of crime, and it does not stop the firm acting.

Also in this chapter

  1. The firm’s own risk assessment
  2. Looking at the client and the matter
  3. Why Merranby’s purchase is rated high
  4. Why the timetable follows the checks
  5. Your job

Preview

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