Key ML/TF risk for Customer Risk Assessment under the IFSCA AML framework

It is essential for the regulated entities that have business in GIFT City to safeguard themselves against money laundering, terrorist financing, and proliferation financing (ML/FT and PF). For this purpose, IFSCA mandates all regulated entities to adopt a Risk-Based Approach. One of the crucial elements of the risk-based approach is undertaking the customer risk assessment process, which aims to evaluate and mitigate ML/FT and PF risks associated with customers.

Undertaking customer risk assessment requires assessing their profile against:

1. Customer-specific risk factors
2. Product/service/Transaction related risk factors
3. Delivery channel-related risk factors
4. Geography-related risk factors
5. And other relevant risk factors as applicable

The customer risk assessment shall be performed using various relevant risk factors. The final risk rating of the customer, high, medium, or low, must be determined, and appropriate controls must be put in place to counter those risks.

At AML India, we understand the vital importance of Customer Risk Assessment in strengthening measures against ML/FT and PF risks. AML India is committed to offering end-to-end AML Consultancy services, including designing Customer Risk Profiling processes for the company and extending managed Customer Due Diligence support.