{"id":10858,"date":"2026-02-12T10:50:26","date_gmt":"2026-02-12T10:50:26","guid":{"rendered":"https:\/\/www.amlcc.com\/?p=10858"},"modified":"2026-02-09T10:54:38","modified_gmt":"2026-02-09T10:54:38","slug":"what-is-a-risk-based-approach","status":"publish","type":"post","link":"https:\/\/www.amlcc.com\/aw\/what-is-a-risk-based-approach\/","title":{"rendered":"What is a risk-based approach?"},"content":{"rendered":"\n<div class=\"wp-block-uagb-container uagb-block-8cdf7575 alignfull uagb-is-root-container\"><div class=\"uagb-container-inner-blocks-wrap\"><h1 style=\"margin-top:0;margin-bottom:0\" class=\"wp-block-post-title\">What is a risk-based approach?<\/h1>\n\n\n<div class=\"wp-block-uagb-info-box uagb-block-4293da6b uagb-infobox__content-wrap  uagb-infobox-icon-left-title uagb-infobox-left uagb-infobox-image-valign-middle\"><div class=\"uagb-ifb-content\"><div class=\"uagb-ifb-left-title-image\"><div class=\"uagb-ifb-image-content\"><img decoding=\"async\" src=\"https:\/\/www.amlcc.com\/wp-content\/uploads\/2024\/09\/Richard-Simms-AMLCC-956x1024.png\" alt=\"Richard Simms\" width=\"80\" height=\"85\" loading=\"lazy\"\/><\/div><div class=\"uagb-ifb-title-wrap\"><span class=\"uagb-ifb-title-prefix\">Richard Simms<\/span><h3 class=\"uagb-ifb-title\">Director and Founder of AMLCC and AMLCC Consult<\/h3><\/div><\/div><\/div><\/div>\n\n\n<figure style=\"aspect-ratio:16\/9;height:480px\" class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1920\" src=\"https:\/\/www.amlcc.com\/wp-content\/uploads\/2026\/02\/pexels-kindelmedia-8488037-scaled.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"What is a risk-based approach?\" style=\"width:100%;height:100%;object-fit:cover;\" srcset=\"https:\/\/www.amlcc.com\/wp-content\/uploads\/2026\/02\/pexels-kindelmedia-8488037-scaled.jpg 2560w, https:\/\/www.amlcc.com\/wp-content\/uploads\/2026\/02\/pexels-kindelmedia-8488037-300x225.jpg 300w, https:\/\/www.amlcc.com\/wp-content\/uploads\/2026\/02\/pexels-kindelmedia-8488037-1024x768.jpg 1024w, https:\/\/www.amlcc.com\/wp-content\/uploads\/2026\/02\/pexels-kindelmedia-8488037-768x576.jpg 768w, https:\/\/www.amlcc.com\/wp-content\/uploads\/2026\/02\/pexels-kindelmedia-8488037-1536x1152.jpg 1536w, https:\/\/www.amlcc.com\/wp-content\/uploads\/2026\/02\/pexels-kindelmedia-8488037-2048x1536.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure><\/div><\/div>\n\n\n\n<div class=\"wp-block-uagb-container uagb-block-f4715dae alignfull uagb-is-root-container\"><div class=\"uagb-container-inner-blocks-wrap\">\n<div class=\"wp-block-uagb-container uagb-block-f9c6201f\">\n<p class=\"wp-block-paragraph\">A risk-based approach sits at the centre of modern anti-money laundering (AML), counter-terrorist financing (CTF) and counter-proliferation financing (CPF) frameworks. It\u2019s the idea that firms should focus their time, effort and controls on the areas where the risks are greatest, rather than applying the same checks to every client, transaction or activity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This approach comes directly from the global standards set by the Financial Action Task Force (FATF). Those standards then flow into UK law and sector guidance for accountants, lawyers, property businesses and other regulated professions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong><strong><strong>FATF\u2019s definition of a risk-based approach<\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.amlcc.com\/what-is-fatf\/\">FATF<\/a> is the global standard-setter for AML, CTF and CPF. Its 2012 Recommendations introduced the risk-based approach as a core principle and it remains central to the current framework.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">FATF\u2019s position is clear. Countries, regulators and regulated firms should:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>identify and assess money laundering, terrorist financing and proliferation financing risks;<\/li>\n\n\n\n<li>understand how those risks arise in their own context; and<\/li>\n\n\n\n<li>apply measures that are proportionate to the level of risk identified.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Higher risks require stronger controls. Lower risks can justify simpler measures, provided that decision is reasoned and documented.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This principle recognises a practical reality. Risks are not evenly distributed. Some clients, services, structures and transactions present more opportunity for abuse than others. Treating everything as equally risky diverts attention away from genuine threats.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FATF\u2019s three linked stages of a risk-based approach<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">FATF describes the risk-based approach as a process rather than a single decision point. It involves three linked stages.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First, risks must be identified and assessed. This means looking at factors such as clients, jurisdictions, delivery channels, products and services, and understanding where exposure exists.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Second, risks must be mitigated. Controls, due diligence and monitoring are designed and applied in line with the assessed level of risk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Third, decisions must be kept under review. Risks change over time, so assessments and controls need to be refreshed when circumstances shift.Importantly, FATF stresses that professional judgement is essential. The risk-based approach is not a checklist exercise. It relies on informed assessment, supported by evidence, and clear reasoning.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How the risk-based approach appears in UK law<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The UK adopts FATF\u2019s standards through domestic legislation and guidance. The\u00a0<a href=\"https:\/\/www.legislation.gov.uk\/uksi\/2017\/692\">Money Laundering Regulations 2017<\/a> (as amended) (MLRs) embed the risk-based approach throughout the framework.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Regulation 18 requires every regulated business to carry out a&nbsp;<a href=\"https:\/\/www.amlcc.com\/what-should-a-business-wide-risk-assessment-cover\/\">business-wide risk assessment<\/a>. This assessment must consider the nature of the business, its clients, the services it provides and the geographic areas it operates in.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That firm-level understanding of risk then feeds into:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>customer\u00a0<a href=\"https:\/\/www.amlcc.com\/what-is-standard-due-diligence\/\">due diligence<\/a>\u00a0decisions;<\/li>\n\n\n\n<li>whether\u00a0<a href=\"https:\/\/www.amlcc.com\/what-is-enhanced-due-diligence\/\">enhanced due diligence<\/a>\u00a0is required;<\/li>\n\n\n\n<li>how often clients are reviewed; and<\/li>\n\n\n\n<li>how\u00a0<a href=\"https:\/\/www.amlcc.com\/whats-ongoing-monitoring-of-a-client\/\">ongoing monitoring<\/a>\u00a0is carried out in practice.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">UK law doesn\u2019t prescribe a single way to do this. Instead, it expects firms to demonstrate that their approach is informed by risk and proportionate to it, reflecting FATF\u2019s principles.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong><strong>How sector guidance reflects the same principles<\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Sector guidance issued for accountancy, legal and property businesses consistently mirrors the FATF model. Across guidance from supervisory bodies and affinity groups, the same themes appear:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Risks vary between clients and matters<\/li>\n\n\n\n<li>Controls should respond to those differences<\/li>\n\n\n\n<li>Decisions should be evidence-based and recorded<\/li>\n\n\n\n<li>Higher-risk situations justify deeper enquiry<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For example, complex&nbsp;<a href=\"https:\/\/www.amlcc.com\/whats-a-layered-ownership-structure\/\">layered ownership structures<\/a>, overseas elements,&nbsp;<a href=\"https:\/\/www.amlcc.com\/whats-a-pep\/\">politically exposed persons<\/a>&nbsp;(PEPs) or unusual transaction patterns are all treated as indicators that risk may be higher. That doesn\u2019t make them unacceptable. It means the response should be more thorough and better documented.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lower-risk situations can justify a lighter approach, as long as the reasoning is clear and aligns with the firm\u2019s overall risk assessment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What a risk-based approach looks like in practice<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In day-to-day AML work, a risk-based approach means joining information together rather than treating each check in isolation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Client due diligence,&nbsp;<a href=\"https:\/\/www.amlcc.com\/whats-source-of-funds\/\">source of funds<\/a>,&nbsp;<a href=\"https:\/\/www.amlcc.com\/whats-source-of-wealth\/\">source of wealth<\/a>,&nbsp;<a href=\"https:\/\/www.amlcc.com\/whats-a-beneficial-owner\/\">beneficial ownership<\/a>&nbsp;and control, geography and behaviour all inform the overall picture. No single factor determines the outcome on its own.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It also means avoiding assumptions. A familiar client can still present new risks if their circumstances change. A complex structure can still be legitimate if it makes sense in context and is supported by evidence.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The common thread is explanation. Regulators and supervisors are looking for firms to show that they understand the risks they face and have responded thoughtfully.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why documentation matters<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">FATF places strong emphasis on documentation. Decisions made using a risk-based approach should be capable of being explained after the event. In practice, this means recording:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>what risks were identified;<\/li>\n\n\n\n<li>why a particular risk level was assigned; and<\/li>\n\n\n\n<li>what measures were applied as a result.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Good records turn judgement into evidence. They show that controls were applied deliberately rather than by default.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong><strong>Final thoughts<\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The risk-based approach is not an extra layer of AML compliance. It is the organising principle that holds the framework together. FATF designed it to make AML more effective by directing attention to where it matters most. UK law and sector guidance follow the same logic.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When applied properly, a risk-based approach supports better decisions, clearer records and more meaningful compliance. It allows regulated professionals to focus on understanding risk in context, rather than treating AML as a uniform administrative task.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<div class=\"wp-block-uagb-info-box uagb-block-7e2f0fec uagb-infobox__content-wrap  uagb-infobox-icon-above-title uagb-infobox-image-valign-top has-ast-global-color-4-background-color\"><div class=\"uagb-ifb-content\"><div class=\"uagb-ifb-title-wrap\"><\/div><p class=\"uagb-ifb-desc\"><strong>Explore how AMLCC&#8217;s features can keep your business completely compliant<\/strong><\/p><div class=\"uagb-ifb-button-wrapper wp-block-button\"><a href=\"https:\/\/www.amlcc.com\/product-features\/training\/\" class=\"uagb-infobox-cta-link wp-block-button__link\" target=\"_self\" rel=\"noopener noreferrer\" onclick=\"return true;\"><span class=\"uagb-inline-editing\">Learn more<\/span><\/a><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-uagb-container article-cta uag-hide-desktop uagb-block-f6be450a\">\n<div class=\"wp-block-uagb-advanced-heading uagb-block-69b8c097\"><h3 class=\"uagb-heading-text\">The one-stop AML solution<\/h3><\/div>\n\n\n\n<p class=\"has-ast-global-color-6-color has-text-color has-link-color wp-elements-ebdcd75c82448b1b24200aa26878c3fb wp-block-paragraph\" style=\"margin-top:0px;margin-bottom:0px;font-size:20px;line-height:1.3\">Educate your teams, improve efficiency and achieve AML compliance all in one place, using AMLCC.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-container-core-buttons-is-layout-2 wp-block-buttons-is-layout-flex\" style=\"justify-content: center;\">\n<div class=\"wp-block-button is-style-fill\"><a href=\"\" class=\"wp-block-button__link wp-element-button demo-secondary\" onclick=\"Calendly.initPopupWidget({url: 'https:\/\/calendly.com\/lisa-jco\/amlcc-demo?hide_gdpr_banner=1&#038;primary_color=ff4f5b'});return false;\">Book now<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-uagb-container uag-hide-desktop uagb-block-c5c14d25\">\n<div class=\"wp-block-uagb-advanced-heading uagb-block-a787415a\"><h3 class=\"uagb-heading-text\">We know AML<\/h3><\/div>\n\n\n\n<p class=\"has-ast-global-color-6-color has-text-color has-link-color wp-elements-b9d9651e7d805b3930e06c1a2fdeee6c wp-block-paragraph\" style=\"margin-top:0px;margin-bottom:0px;font-size:20px;line-height:1.3\">We\u2019re regulated professionals too. We know what you need to comply with the Regulations.<br><\/p>\n\n\n\n<div class=\"wp-block-uagb-icon-list uagb-block-cffcf54f\"><div class=\"uagb-icon-list__wrap\">\n<div class=\"wp-block-uagb-icon-list-child uagb-block-082e00ee\"><span class=\"uagb-icon-list__source-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\"><path d=\"M0 256C0 114.6 114.6 0 256 0C397.4 0 512 114.6 512 256C512 397.4 397.4 512 256 512C114.6 512 0 397.4 0 256zM371.8 211.8C382.7 200.9 382.7 183.1 371.8 172.2C360.9 161.3 343.1 161.3 332.2 172.2L224 280.4L179.8 236.2C168.9 225.3 151.1 225.3 140.2 236.2C129.3 247.1 129.3 264.9 140.2 275.8L204.2 339.8C215.1 350.7 232.9 350.7 243.8 339.8L371.8 211.8z\"><\/path><\/svg><\/span><span class=\"uagb-icon-list__label\">We\u2019re internationally recognised AML experts<\/span><\/div>\n\n\n\n<div class=\"wp-block-uagb-icon-list-child uagb-block-ebce1a01\"><span class=\"uagb-icon-list__source-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\"><path d=\"M0 256C0 114.6 114.6 0 256 0C397.4 0 512 114.6 512 256C512 397.4 397.4 512 256 512C114.6 512 0 397.4 0 256zM371.8 211.8C382.7 200.9 382.7 183.1 371.8 172.2C360.9 161.3 343.1 161.3 332.2 172.2L224 280.4L179.8 236.2C168.9 225.3 151.1 225.3 140.2 236.2C129.3 247.1 129.3 264.9 140.2 275.8L204.2 339.8C215.1 350.7 232.9 350.7 243.8 339.8L371.8 211.8z\"><\/path><\/svg><\/span><span class=\"uagb-icon-list__label\">We work with most accountancy supervisors and the Law Society<\/span><\/div>\n\n\n\n<div class=\"wp-block-uagb-icon-list-child uagb-block-352e4894\"><span class=\"uagb-icon-list__source-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\"><path d=\"M0 256C0 114.6 114.6 0 256 0C397.4 0 512 114.6 512 256C512 397.4 397.4 512 256 512C114.6 512 0 397.4 0 256zM371.8 211.8C382.7 200.9 382.7 183.1 371.8 172.2C360.9 161.3 343.1 161.3 332.2 172.2L224 280.4L179.8 236.2C168.9 225.3 151.1 225.3 140.2 236.2C129.3 247.1 129.3 264.9 140.2 275.8L204.2 339.8C215.1 350.7 232.9 350.7 243.8 339.8L371.8 211.8z\"><\/path><\/svg><\/span><span class=\"uagb-icon-list__label\">Bespoke AML consultancy available for all sectors<\/span><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-uagb-buttons uagb-buttons__outer-wrap uagb-btn__default-btn uagb-btn-tablet__default-btn uagb-btn-mobile__default-btn uagb-block-fc153394\"><div class=\"uagb-buttons__wrap uagb-buttons-layout-wrap \">\n<div class=\"wp-block-uagb-buttons-child uagb-buttons__outer-wrap uagb-block-79a4148c wp-block-button\"><div class=\"uagb-button__wrapper\"><a class=\"uagb-buttons-repeater wp-block-button__link\" aria-label=\"\" href=\"https:\/\/www.amlcc.com\/consult\/\" rel=\"follow noopener\" target=\"_self\" role=\"button\"><div class=\"uagb-button__link\">Find out more<\/div><\/a><\/div><\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-uagb-container uagb-block-99e38104\">\t\t\t\t<div class=\"wp-block-uagb-table-of-contents uagb-toc__align-left uagb-toc__columns-1  uagb-block-1daea5fd article-toc     \"\n\t\t\t\t\tdata-scroll= \"1\"\n\t\t\t\t\tdata-offset= \"30\"\n\t\t\t\t\tstyle=\"\"\n\t\t\t\t>\n\t\t\t\t<div class=\"uagb-toc__wrap\">\n\t\t\t\t\t\t<div class=\"uagb-toc__title\">\n\t\t\t\t\t\t\tJump to:\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"uagb-toc__list-wrap \">\n\t\t\t\t\t\t<ol class=\"uagb-toc__list\"><li class=\"uagb-toc__list\"><a href=\"#fatfs-definition-of-a-risk-based-approach\" class=\"uagb-toc-link__trigger\">FATF\u2019s definition of a risk-based approach<\/a><li class=\"uagb-toc__list\"><a href=\"#fatfs-three-linked-stages-of-a-risk-based-approach\" class=\"uagb-toc-link__trigger\">FATF\u2019s three linked stages of a risk-based approach<\/a><li class=\"uagb-toc__list\"><a href=\"#how-the-risk-based-approach-appears-in-uk-law\" class=\"uagb-toc-link__trigger\">How the risk-based approach appears in UK law<\/a><li class=\"uagb-toc__list\"><a href=\"#how-sector-guidance-reflects-the-same-principles\" class=\"uagb-toc-link__trigger\">How sector guidance reflects the same principles<\/a><li class=\"uagb-toc__list\"><a href=\"#what-a-risk-based-approach-looks-like-in-practice\" class=\"uagb-toc-link__trigger\">What a risk-based approach looks like in practice<\/a><li class=\"uagb-toc__list\"><a href=\"#why-documentation-matters\" class=\"uagb-toc-link__trigger\">Why documentation matters<\/a><li class=\"uagb-toc__list\"><a href=\"#final-thoughts\" class=\"uagb-toc-link__trigger\">Final thoughts<\/a><\/ol>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\n\n\n<div class=\"wp-block-uagb-container article-cta uag-hide-tab uag-hide-mob uagb-block-9b41d3fe\">\n<div class=\"wp-block-uagb-advanced-heading uagb-block-28078d4a\"><h3 class=\"uagb-heading-text\">The one-stop AML solution<\/h3><\/div>\n\n\n\n<p class=\"has-ast-global-color-6-color has-text-color has-link-color wp-elements-5d272eb52ee2429e4d9aca3147f023ba wp-block-paragraph\" style=\"margin-top:0px;margin-bottom:0px;font-size:20px;line-height:1.3\">Educate your teams, improve efficiency and achieve AML compliance all in one place, using AMLCC. <\/p>\n\n\n\n<p class=\"has-ast-global-color-6-color has-text-color has-link-color wp-elements-1d59a108b13f9b62392e8e9a08c592ee wp-block-paragraph\" style=\"margin-top:0px;margin-bottom:0px;font-size:20px;line-height:1.3\">Talk to our experts about how we can help you secure your business.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-container-core-buttons-is-layout-2 wp-block-buttons-is-layout-flex\" style=\"justify-content: center;\">\n<div class=\"wp-block-button is-style-fill\"><a href=\"\" class=\"wp-block-button__link wp-element-button demo-secondary\" onclick=\"Calendly.initPopupWidget({url: 'https:\/\/calendly.com\/lisa-jco\/amlcc-demo?hide_gdpr_banner=1&#038;primary_color=ff4f5b'});return false;\">Book a demo<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"uagb-position__sticky wp-block-uagb-container uag-hide-tab uag-hide-mob uagb-block-353bcb12\">\n<div class=\"wp-block-uagb-advanced-heading uagb-block-45cdaeb7\"><h3 class=\"uagb-heading-text\">We know AML<\/h3><\/div>\n\n\n\n<p class=\"has-ast-global-color-6-color has-text-color has-link-color wp-elements-b9d9651e7d805b3930e06c1a2fdeee6c wp-block-paragraph\" style=\"margin-top:0px;margin-bottom:0px;font-size:20px;line-height:1.3\">We\u2019re regulated professionals too. We know what you need to comply with the Regulations.<br><\/p>\n\n\n\n<div class=\"wp-block-uagb-icon-list uagb-block-b41f0db0\"><div class=\"uagb-icon-list__wrap\">\n<div class=\"wp-block-uagb-icon-list-child uagb-block-333d0a11\"><span class=\"uagb-icon-list__source-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\"><path d=\"M0 256C0 114.6 114.6 0 256 0C397.4 0 512 114.6 512 256C512 397.4 397.4 512 256 512C114.6 512 0 397.4 0 256zM371.8 211.8C382.7 200.9 382.7 183.1 371.8 172.2C360.9 161.3 343.1 161.3 332.2 172.2L224 280.4L179.8 236.2C168.9 225.3 151.1 225.3 140.2 236.2C129.3 247.1 129.3 264.9 140.2 275.8L204.2 339.8C215.1 350.7 232.9 350.7 243.8 339.8L371.8 211.8z\"><\/path><\/svg><\/span><span class=\"uagb-icon-list__label\">We\u2019re internationally recognised AML experts<\/span><\/div>\n\n\n\n<div class=\"wp-block-uagb-icon-list-child uagb-block-b485c460\"><span class=\"uagb-icon-list__source-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\"><path d=\"M0 256C0 114.6 114.6 0 256 0C397.4 0 512 114.6 512 256C512 397.4 397.4 512 256 512C114.6 512 0 397.4 0 256zM371.8 211.8C382.7 200.9 382.7 183.1 371.8 172.2C360.9 161.3 343.1 161.3 332.2 172.2L224 280.4L179.8 236.2C168.9 225.3 151.1 225.3 140.2 236.2C129.3 247.1 129.3 264.9 140.2 275.8L204.2 339.8C215.1 350.7 232.9 350.7 243.8 339.8L371.8 211.8z\"><\/path><\/svg><\/span><span class=\"uagb-icon-list__label\">We work with most accountancy supervisors and the Law Society<\/span><\/div>\n\n\n\n<div class=\"wp-block-uagb-icon-list-child uagb-block-c0d2ec75\"><span class=\"uagb-icon-list__source-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\"><path d=\"M0 256C0 114.6 114.6 0 256 0C397.4 0 512 114.6 512 256C512 397.4 397.4 512 256 512C114.6 512 0 397.4 0 256zM371.8 211.8C382.7 200.9 382.7 183.1 371.8 172.2C360.9 161.3 343.1 161.3 332.2 172.2L224 280.4L179.8 236.2C168.9 225.3 151.1 225.3 140.2 236.2C129.3 247.1 129.3 264.9 140.2 275.8L204.2 339.8C215.1 350.7 232.9 350.7 243.8 339.8L371.8 211.8z\"><\/path><\/svg><\/span><span class=\"uagb-icon-list__label\">Bespoke AML consultancy available for all sectors<\/span><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-uagb-buttons uagb-buttons__outer-wrap uagb-btn__default-btn uagb-btn-tablet__default-btn uagb-btn-mobile__default-btn uagb-block-27986e97\"><div class=\"uagb-buttons__wrap uagb-buttons-layout-wrap \">\n<div class=\"wp-block-uagb-buttons-child uagb-buttons__outer-wrap uagb-block-5e096d1b wp-block-button\"><div class=\"uagb-button__wrapper\"><a class=\"uagb-buttons-repeater wp-block-button__link\" aria-label=\"\" href=\"https:\/\/www.amlcc.com\/consult\/\" rel=\"follow noopener\" target=\"_self\" role=\"button\"><div class=\"uagb-button__link\">Find out more<\/div><\/a><\/div><\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-uagb-container half-blue-desktop uagb-block-89ea4904 alignfull uagb-is-root-container\">\n<div class=\"wp-block-uagb-container uagb-block-fdab8534\">\n<div class=\"wp-block-uagb-advanced-heading uagb-block-52a83ed5\"><h3 class=\"uagb-heading-text\">What others have said<\/h3><\/div>\n\n\n\n<div class=\"wp-block-uagb-slider amlcc-testimonial-slider uagb-block-6c68dd50 uagb-slider-container\"><div class=\"uagb-slides uagb-swiper\"><div class=\"swiper-wrapper\">\n<div class=\"wp-block-uagb-slider-child uagb-slider-child-wrap swiper-slide uagb-block-b998a2d4\"><div class=\"swiper-content\">\n<div class=\"wp-block-uagb-container uagb-block-04f3c45e\">\n<div class=\"wp-block-uagb-container uagb-block-02c01de1\">\n<div class=\"wp-block-uagb-advanced-heading uagb-block-b215507c\"><h3 class=\"uagb-heading-text\">&#8220;We had the man from the ICAEW here yesterday to carry out a QAD practice review. We got a clean bill of health \u2013 not a single action point\u2026That is in no small measure due to AMLCC so I just wanted to say \u2018thank you\u2019&#8221;<\/h3><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-uagb-container uagb-block-949a56df\">\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"812\" src=\"https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/testimonial-1.jpg\" alt=\"\" class=\"wp-image-495\" style=\"aspect-ratio:3\/4;object-fit:contain;width:auto;height:382px\" srcset=\"https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/testimonial-1.jpg 550w, https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/testimonial-1-203x300.jpg 203w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/figure>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-uagb-slider-child uagb-slider-child-wrap swiper-slide uagb-block-cc23ebfe\"><div class=\"swiper-content\">\n<div class=\"wp-block-uagb-container uagb-block-af8628f6\">\n<div class=\"wp-block-uagb-container uagb-block-9e1b5830\">\n<div class=\"wp-block-uagb-advanced-heading uagb-block-bdd14157\"><h3 class=\"uagb-heading-text\">&#8220;Thank you for such a perfect and informative [solution]. You have given me a clear direction for my AML training and CPD.&#8221;<br><\/h3><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-uagb-container uagb-block-ef336e36\">\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"786\" src=\"https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/testimonial-2.jpg\" alt=\"\" class=\"wp-image-496\" style=\"aspect-ratio:3\/4;object-fit:contain;width:auto;height:382px\" srcset=\"https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/testimonial-2.jpg 550w, https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/testimonial-2-210x300.jpg 210w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/figure>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-uagb-slider-child uagb-slider-child-wrap swiper-slide uagb-block-040a7367\"><div class=\"swiper-content\">\n<div class=\"wp-block-uagb-container uagb-block-3b2e0080\">\n<div class=\"wp-block-uagb-container uagb-block-64ce7dad\">\n<div class=\"wp-block-uagb-advanced-heading uagb-block-3d47ccc6\"><h3 class=\"uagb-heading-text\">&#8220;I just wanted to say \u2018thank you\u2019 to you, Richard, and all the team at AMLCC for providing a service that really does minimise the burden of AML compliance.&#8221;<br><\/h3><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-uagb-container uagb-block-e1d755c8\">\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"732\" src=\"https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/testimonial-3.jpg\" alt=\"\" class=\"wp-image-494\" style=\"aspect-ratio:3\/4;object-fit:contain;width:auto;height:382px\" srcset=\"https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/testimonial-3.jpg 550w, https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/testimonial-3-225x300.jpg 225w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/figure>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-uagb-slider-child uagb-slider-child-wrap swiper-slide uagb-block-403770d4\"><div class=\"swiper-content\">\n<div class=\"wp-block-uagb-container uagb-block-a0d5a66b\">\n<div class=\"wp-block-uagb-container uagb-block-a9b0dbd5\">\n<div class=\"wp-block-uagb-advanced-heading uagb-block-302585b3\"><h3 class=\"uagb-heading-text\">&#8220;What a refreshing pleasure working with a company who actually listens to the feedback from their customers and communicates with them!&#8221;<br><\/h3><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-uagb-container uagb-block-64782dba\">\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"732\" src=\"https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/testimonial-4.jpg\" alt=\"\" class=\"wp-image-497\" style=\"aspect-ratio:3\/4;object-fit:contain;width:auto;height:382px\" srcset=\"https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/testimonial-4.jpg 550w, https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/testimonial-4-225x300.jpg 225w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/figure>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-uagb-slider-child uagb-slider-child-wrap swiper-slide uagb-block-9b9b7e36\"><div class=\"swiper-content\">\n<div class=\"wp-block-uagb-container uagb-block-3a9f75d3\">\n<div class=\"wp-block-uagb-container uagb-block-aa8435c0\">\n<div class=\"wp-block-uagb-advanced-heading uagb-block-afe45a8b\"><h3 class=\"uagb-heading-text\">&#8220;Your team they have been excellent from the moment Fiona did a demo for me with only 15 minutes notice, and thoroughly going through the AMLCC product, answering the many questions I had! It was at this point at which I made up my mind this is the sort of business I want to work with for my AML.&#8221;<br><\/h3><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-uagb-container uagb-block-8f4648c6\">\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"798\" src=\"https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/testimonial-5.jpg\" alt=\"\" class=\"wp-image-498\" style=\"aspect-ratio:3\/4;object-fit:contain;width:auto;height:382px\" srcset=\"https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/testimonial-5.jpg 550w, https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/testimonial-5-207x300.jpg 207w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/figure>\n<\/div>\n<\/div>\n<\/div><\/div>\n<\/div><\/div><div class=\"swiper-pagination\"><\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-uagb-container uagb-block-bd594624\">\n<div class=\"wp-block-uagb-advanced-heading uagb-block-deefd48d\"><h3 class=\"uagb-heading-text\">Making compliance easier<\/h3><\/div>\n\n\n\n<div class=\"wp-block-uagb-image aligncenter uagb-block-94cd8a56 wp-block-uagb-image--layout-default wp-block-uagb-image--effect-static wp-block-uagb-image--align-center\"><figure class=\"wp-block-uagb-image__figure\"><img decoding=\"async\" srcset=\"https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/image-22-1.png ,https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/image-22-1.png 780w, https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/image-22-1.png 360w\" sizes=\"auto, (max-width: 480px) 150px\" src=\"https:\/\/www.amlcc.com\/wp-content\/uploads\/2023\/11\/image-22-1.png\" alt=\"AMLCC newsroom\" class=\"uag-image-1454\" width=\"700\" height=\"450\" title=\"image-22-1\" loading=\"lazy\" role=\"img\"\/><\/figure><\/div>\n\n\n\n<div class=\"wp-block-uagb-buttons uagb-buttons__outer-wrap uagb-btn__default-btn uagb-btn-tablet__default-btn uagb-btn-mobile__default-btn uagb-block-d88e5ed5\"><div class=\"uagb-buttons__wrap uagb-buttons-layout-wrap \">\n<div class=\"wp-block-uagb-buttons-child uagb-buttons__outer-wrap uagb-block-762fbc5a wp-block-button\"><div class=\"uagb-button__wrapper\"><a class=\"uagb-buttons-repeater wp-block-button__link\" aria-label=\"\" href=\"\/press\/\" rel=\"follow noopener\" target=\"_self\" role=\"button\"><div class=\"uagb-button__link\">View more articles<\/div><\/a><\/div><\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A risk-based approach sits at the centre of modern anti-money laundering (AML), counter-terrorist financing (CTF) and counter-proliferation financing (CPF) frameworks. It\u2019s the idea that firms should focus their time, effort and controls on the areas where the risks are greatest, rather than applying the same checks to every client, transaction or activity. This approach comes [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":10860,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"unboxed","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10858","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Is a Risk-Based Approach? 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