How the EU AML Directive Approaches Risk-Based Customer Due Diligence for Financial Institutions?
Do you know how banks and other financial businesses determine how closely to scrutinize their customers? The EU's anti-money laundering rules urge the individual assessment of a customer's risk profile. As new amendments come across the EU within the 5th Anti-Money Laundering Directive, financial institutions are embracing a reaffirmed direction toward risk-based due diligence. Under this new framework, the same checks no longer need to be conducted on all customers. Still, firms must calibrate due diligence to the specific risks presented by each of their business relationships or transactions. This promises to streamline compliance processes but with no sacrifice in effectiveness in counter-money laundering or terrorist financing threats. This article will discuss the EU AM...
