AnEnterprise-Wide Risk Assessment (EWRA)helpsfinancial institutionsidentify and mitigatemoney laundering risks.
Option B (Correct):Wolfsberg Group and FATF emphasize that an EWRA should focus onhigher-risk customers, products, and geographies, ensuringappropriate controlsare in place.
Option A (Incorrect):Institutions shouldnot blindly adopt third-party frameworkswithoutcustomizing themto their specific risk exposure.
Option C (Incorrect):While new clients are important, an EWRA mustassess risks across all customers and transactions.
Option D (Incorrect):EWRAmust address residual risk, not just inherent risk. Effectivemitigation strategiesare essential.
[Reference:Wolfsberg Group Guidance on Risk-Based Approach (2019), FATF Recommendation 1 (Risk-Based Approach), Basel Committee’s AML/CFT Principles., , , , ]
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