AML Essential Kit - Firm-wide risk assessments

A Firm-wide Risk Assessment (FWRA) is a structured review of your firm’s exposure to money laundering, terrorist financing, and proliferation financing risks. It considers factors like your services, clients, delivery channels, and geographic reach to identify where your biggest AML risks lie. The findings shape how you apply due diligence, design your policies, and train your team.

Why FWRAs matter

A strong FWRA helps you focus on the risks that matter most and ensures your AML approach is proportionate. Regulators often cite poor or missing FWRAs as a top compliance issue — so having a clear, up-to-date FWRA is critical to protecting your firm and staying compliant.

How to carry out a firm-wide risk assessment

Your FWRA should cover five core areas, as required by regulation 18 of the Money Laundering Regulations (MLR 2017):

• Your client base

• The countries you operate in or deal with

• The services you offer

• The types of transactions you carry out

• How your services are delivered

The FWRA must be documented, regularly reviewed, and made available to your supervisory body on request.

Learn more

The AML Essential Kit on firm-wide risk assessments will guide you through everything you need to know, it covers:

1. Understanding AML risk

2. Your client base

3. Geographic exposure

4. Services and transactions

5. Delivery channels

6. Using supervisory guidance

7. Keeping it documented and up to date

Summary

A firm-wide risk assessment is the foundation of a strong, proportionate AML programme. It helps you identify your firm’s exposure, implement better controls, and stay compliant with MLR 2017.

View all the details and the full AML Essential Kit here - https://www.firmcheck.com/aml-essential-kit/firm-wide-risk-assessments