How often should an AML audit risk assessment occur for all auditable entities?

An AML audit risk assessment should occur annually for all auditable entities. This frequency is essential because the landscape of money laundering and other financial crimes is continually evolving, with regulators and criminal methods constantly adapting. An annual risk assessment ensures that organizations remain vigilant and proactive in assessing their vulnerabilities to these risks.

An annual review allows entities to evaluate their controls and processes regularly, ensuring compliance with evolving laws and regulations. It also provides a timely opportunity to identify any emerging trends or changes in risk since the previous assessment. This annual cadence helps organizations to reassess their risk profile, make necessary adjustments to their AML programs, and remain compliant and effective in their risk management strategies.

The other options, while they suggest regularity, do not provide the same level of proactive oversight as an annual audit. For example, conducting assessments monthly may overwhelm resources without significantly enhancing effectiveness, while biennial assessments could leave organizations exposed to new risks for an extended period.