The Crucial Role of a Business-Wide Risk Assessment
To comply with the revised EBA ML/TF Risk Factors Guidelines, financial institutions should use the business-wide risk assessment to inform the level of initial customer due diligence that they will apply in specific situations, and to particular types of customers, products, services and delivery channels. And finally, customer risk assessments should inform, but are no substitute for, a business-wide risk assessment.
Even though the business-wide and customer risk assessments are different and separate processes, they are interdependent. This means you need to know how to use them and how they interact between each other, in order to have an overall effective ML/TF risk assessment procedure.