What is a risk-based approach to anti-money laundering?
By SendPay Business · · 2 min read
A risk-based approach means a firm puts the most effort into the customers and payments most likely to be linked to financial crime, and less into those that are low risk. It's the method the Financial Action Task Force (FATF) recommends and UK rules require.
How it works
- Assess the business-wide risks, such as products, countries and delivery channels.
- Rate each customer's risk, for example low, medium or high.
- Match the checks and monitoring to that rating.
- Review ratings when things change and keep records of the reasoning.
What raises a customer's risk
Common factors include links to high-risk countries, complex ownership structures, cash-heavy businesses, politically exposed persons and activity that doesn't match the stated purpose of the account.
Why regulators prefer it
Treating every customer the same either wastes effort on low-risk people or misses real threats. A risk-based approach focuses attention where it matters.
Where SendPay fits
SendPay platforms give your customers GBP, EUR and USD accounts, transfers and branded Visa cards under your own brand, powered by licensed partners who run the required checks.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
What do identity checks cost per customer?
Work out the cost per verified customer after drop-offs and manual reviews, from your own numbers.
KYC cost calculator →What is customer due diligence?
The checks firms run to know their customers.
Customer due diligence →Who is a politically exposed person?
Someone in a prominent public role, who gets extra checks.
Politically exposed persons →What is sanctions screening?
Checking customers and payments against sanctions lists.
Sanctions screening →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.