What is a risk-based approach to anti-money laundering?
By SendPay Business · · 2 min read
- 1Add your photo ID
- 2Add proof of address
- 3Checked and verified
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
0 of 4 done
Tick each step as you do it, so you can see what is left.
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.
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What it does
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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.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
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
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
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. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.