A risk‐based approach to AML: A controversy between financial institutions and regulators

Abstract

Purpose

The purpose of this paper is to present a risk‐based approach to anti‐money laundering (AML) systems.

Design/methodology/approach

The paper covers the areas of: customer due diligence, customer acceptance, risk management and implementation.

Findings

Regulators and financial institutions need to co‐operate so that AML standards can be set within a risk‐based approach, thus enabling a country to protect itself in the best possible and affordable way.

Originality/value

The paper outlines the controversy present between financial institutions and regulators in the approach to AML.

Citation

de Wit, J. (2007), "A risk‐based approach to AML: A controversy between financial institutions and regulators", Journal of Financial Regulation and Compliance, Vol. 15 No. 2, pp. 156-165. https://doi.org/10.1108/13581980710744048