The Customer Risk Assessment (CRA) is an integral part of customer due diligence measures when on-boarding customers. It helps organisations identify and assess the potential risks associated with a customer, such as money laundering, terrorist financing, or other criminal activities. By conducting a thorough CRA, organisations can make informed decisions about whether to establish a business relationship with a customer, and if so, what level of monitoring and due diligence is necessary to mitigate any potential risks.
Overall, the CRA is a critical tool for ensuring compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations, as well as protecting the reputation and financial stability of the organisation. This assessment gains more importance under the EU 4th and 5th EU AML Directives and the FIAU’s Implementing Procedures. Subject persons need to have documented customer risk assessments which are maintained throughout the duration of the business relationships.
BDO can assist organisations in:
- carrying out and recording customer risk assessments;
- determining the correct level of customer due diligence to be applied; and
- maintaining and updating the customer risk assessments.