Risk assessment and customer due diligence

The money laundering regulations (MLRs) require every relevant organisation to take appropriate steps to identify and assess the risks of money laundering and terrorist financing to which its business is subject. We refer to this as the firm-wide risk assessment. It is the foundation upon which a firm builds its AML policies and procedures, particularly regarding customer due diligence (CDD). We asked the money laundering reporting officer (MLRO) at a sample of 100 high and high/medium risk accountancy firms a series of questions. We also asked for a copy of their most recent firm-wide risk as...

The money laundering regulations (MLRs) require every relevant organisation to take appropriate steps to identify and assess the risks of money laundering and terrorist financing to which its business is subject. We refer to this as the firm-wide risk assessment. It is the foundation upon which a firm builds its AML policies and procedures, particularly regarding customer due diligence (CDD). We asked the money laundering reporting officer (MLRO) at a sample of 100 high and high/medium risk accountancy firms a series of questions. We also asked for a copy of their most recent firm-wide risk as...

Firm-wide risk assessments (FWRAs) lay the foundation for effective anti-money laundering (AML) policies and procedures. In a recent webinar, ICAEW’s AML team talked about what a good assessment looks like and offered some insights into the most common failings found during monitoring visits.

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR17) require firms to take the appropriate steps to identify and assess the risk that they could be used for money laundering, including terrorist financing.

The Q&A session in ICAEW’s recent anti-money laundering (AML) webinar on firm-wide risk assessments (FWRAs) highlighted a range of issues. We pick out some common themes, and ICAEW’s AML team provides responses to key questions.

The Q&A session in ICAEW's recent webinar on money laundering risks highlighted a range of issues. We pick out some common themes, and experts from ICAEW's anti-money laundering (AML) team and leading firms provide responses to key questions.

This page is part of a series on the most common issues we've found when reviewing firms' compliance with the Money Laundering Regulations.

3 March 2021: A shared understanding between law enforcement, supervisory bodies and firms of money laundering and terrorist financing risks is crucial to ensuring firms recognise when they are at risk of being used to facilitate money laundering.

This section provides guidance on how ICAEW member firms can effectively design and implement a risk-based approach. We also provide information on AML risk.

ICAEW has produced a short video to help members know their clients better using open sources of information.