A money laundering (AML) risk assessment is a Europe-wide legal requirement that needs to be performed by subject persons. This legal obligation is an effective way of curtailing money laundering and fraudulent activities; however, AML Risk Assessments can produce complex results that are difficult to interpret. Sometimes, results are so multifaceted that in order to avoid unintentionally engaging high risk clients, an AML report might require in depth analytical skills which some businesses do not possess nor afford. With this in mind, and with the aim of simplifying this process for our clients, StartKYC provides an automated AML Risk Calculation that takes into consideration the main vulnerabilities of a potential client, calculates the client’s level of risk and, presents it in a simple and visual graph, alongside the subject person’s risk appetite.

Simplify the risk assessment process

The StartKYC AML Risk Calculator considers the following Key Risk Markers:

• Size and complexity of a potential business client
• Type of customer
• The type of products and/or services provided by the customer
• The way new clients are onboarded
• Geographical and environmental risks

With all this in the mix, our AML risk calculator generates a risk score based on five types of risk, namely:

• Customer risk
• Interface risk
• Jurisdiction risk
• Business risk

Each of these risk factors take into account different elements that are inputted by the subject person and pertaining to the nature of that type of risk.

Consistency in risk assessment

Depending on the data inputted by the subject person about the prospect, the calculator issues an AML risk score that ranges from a rating of low, low to moderate, moderate, moderate to high, high and very high.  A percentage weighting is also calculated for each factor, and finally, the user is presented with an Overall Risk Score. The StartKYC risk calculator issues a graph that visually illustrates the clients overall risk level vs the subject person’s risk appetite.

Based on this easy to interpret visual result, the subject persons can then take an informed decision based on their own risk tolerance policy.