Drafting Policies and Procedures — Why is a risk assessment important?

In our previous post we talked about a risk assessment as the foundation of AML compliance and an important first step in developing an effective and successful AML program. Here we will talk about why risk assessment is important for effective AML controls. 

With the foundation set, one of the pillars of AML compliance is effective AML controls by means of policies and procedures. Without a risk assessment, there is no basis to know what should be addressed by policies and procedures, and there would be no basis to assess their effectiveness as controls.

The importance of risk assessment is to identify the risk of money-laundering while engaging in your insurance business. A risk-based approach to AML provides proactive steps to mitigate illicit activity and protect your company and employees from money-laundering fines. This approach is very important to ongoing effectiveness in AML.

What can Currin Compliance Services do for you?

Simply put, we have the tools and expertise to draft and/or review policies and procedures to address the risks identified in your risk assessment. 

Do you need help with your company's AML risk assessment and/or drafting policies and procedures? Not sure how to get started or maybe you’re stuck along the way? We can help. Send us an email.