Assessing the AML risk assessment must be part of planning and scoping the examination, and the addition of a section on risk evaluationin the manual does not mean the 2 methods are different. Somewhat, aml risk assessments has been given its own section to highlightits importance in the assessment process and in the bank's designing of successfulrisk-based controls.
The same risk management ethics which the bank uses in usual operational areas must be applied to managing and accessing AML risk. A well-built risk assessment will help in finding the bank's AML risk profile. Identifying the risk profile allows the bank to apply suitable risk management methods to the AML compliance program to lessen risk. This aml compliance programme allows management to better spot and lessen breaks in the bank's controls. The risk assessment must offer a complete analysis of the AML risks in an organized and concise and presentation, and must be communicated and shared with all business lines across the banks, management, board of directors, and suitable staff, by itself, it is a great practice that the risk assessment be lessened to writing.
There are several useful techniques and formats used in finishing an AML risk assessment; hence, assessors must not encourage a specific format or method. Bank management must decide the suitable format or method, based on the bank's certain risk profile. What so ever format management selects to use for its risk assessment, it must be simply grasped by all suitable parties.
The advancement of the aml risk assessments usually involves 2 steps: firstly, ascertain the exact risk categories such as services, transactions, products, clients, entities, and geographic sites which are exclusive to the bank and secondly, carry out a more thorough assessment of the data detected to better evaluate the risk within these categories. In evaluating the risk assessment during the planning and scoping process, the assessor must decide whether management has pondered on all services, transactions, products, clients, entities, and geographic spots, and if management's thorough assessment within these particular risk categories was sufficient. If the banks have not builta risk assessment, this truth must be debated with management. For the reasonsof theassessment, every timethe bank has not finisheda risk assessment, or the risk assessment is insufficient, the assessor should finished a risk assessment based on obtain able info.
An assessor should access the bank's AML compliance program with appropriate knowledge of the bank's AML risks so as to verify whether the AML compliance program is sufficient and offers the controls needed to lessen risks.
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