{"id":19546,"date":"2022-06-30T06:00:39","date_gmt":"2022-06-30T13:00:39","guid":{"rendered":"https:\/\/www.trulioo.com\/?p=19546"},"modified":"2023-07-31T23:49:12","modified_gmt":"2023-07-31T23:49:12","slug":"onboarding-risk-assessment","status":"publish","type":"post","link":"https:\/\/www.trulioo.com\/blog\/customer-onboarding\/onboarding-risk-assessment","title":{"rendered":"Simple Onboarding with KYC\/AML Risk Assessment"},"content":{"rendered":"\n

When it comes to onboarding individual or corporate clients, risk assessment is essential. Performing Know Your Customer (KYC<\/a>) and Anti-Money Laundering (AML<\/a>) risk assessment checks help ensure compliance, deter fraud and provide insights into your new clients and their activities.<\/p>\n\n\n\n

Risk assessments are a fundamental part of a risk-based approach<\/a> and help identify potential issues, understand the risk of dealing with a customer, and determine what measures are necessary to counter the threat. If the risk is not in line with company policies, rejecting the application before opening an account might be advisable.<\/p>\n\n\n\n

Practical risk assessment tools let you tailor the information gathering process to your needs and gain risk assessment insights specific to your business. As each jurisdiction and customer poses different risk considerations, the tools should enable automated workflows to handle different scenarios quickly. While you must protect your business, you also want to ensure the onboarding process is relatively quick and seamless.<\/p>\n\n\n\n

The importance of risk assessment<\/h2>\n\n\n\n

You wouldn\u2019t go into business with just anyone, and nowadays, you don\u2019t have to rely on a hunch to decide who\u2019s a little fishy and who\u2019s a safe bet. By having a risk assessment system, you can better understand who your clients<\/a> are and dictate the parameters of how you wish to serve them. Mitigating potential risks that may harm your business before becoming a customer is the safest strategy.<\/p>\n\n\n\n

But just because a client is high-risk doesn\u2019t mean they\u2019re off limits, and you shouldn\u2019t onboard them. It just means they may require special attention from your end. A system to help you actively manage risk assessment when onboarding can help you comply with KYC\/AML regulations and improve your services.<\/p>\n\n\n\n

Traditionally, customer risk levels are divided into four buckets that will determine the nature of your relationship with them and how you should manage them:<\/p>\n\n\n\n