Use a risk-based approach to design KYC steps that manage AML/CFT risk without unnecessarily excluding low-risk clients.
Inclusion-control tension Seventeen clients were rejected because standard ID documents were delayed. The wrong rule can either exclude legitimate clients or expose the institution to abuse. Risk-based approach Match due diligence to actual risk The FATF risk-based approach emphasizes identifying and understanding risk, then prioritizing controls where risk is highest. Shortcut Use one strict rule for everyone. Inclusion with documented control. Proportionate controls protect both access and integrity. 01 Classify 02 Onboard 03 Monitor Node 1 The product is a low-balance account with transaction caps.
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