What do significant internal and external change events affect in AML risk assessments?

Significant internal and external change events have a direct impact on the frequency and focus of risk reassessments in anti-money laundering (AML) practices. When there are notable changes—such as new regulations, shifts in business operations, changes in economic conditions, or emerging threats in the financial landscape—risk assessments must be updated to reflect these new realities.

This reassessment ensures that organizations are identifying and prioritizing the most pertinent risks they face at any given time. By revisiting the risk profile regularly, institutions can tailor their AML strategies to address the evolving nature of risks, thereby enhancing their overall effectiveness in combating money laundering activities.

The other options reflect important aspects of an AML compliance program, such as the structure of audit teams, training, and budget considerations; however, they do not directly relate to the core function of risk assessments responding to external and internal changes. The central point here is that the agility in reassessing risks is crucial for effective AML compliance, making this aspect a priority that stems from significant changes.