What is the distinction between the review of the EWRA and the audit of the EWRA?

The review of the Enhanced Due Diligence (EDD) and Risk Assessment (EWRA) is integral to the overall Anti-Money Laundering (AML) audit risk assessment process. This means that the review is often aligned with the methodologies used to assess the entity's risk exposure and controls against money laundering activities. By situating the review within the larger context of the AML audit risk assessment, it emphasizes the need to evaluate both the effectiveness of the risk mitigation strategies in place and the associated vulnerabilities identified during the review.

In contrast, while the audit is related to a more formal examination of processes and controls, it is not solely focused on the risk assessment aspect but rather looks at compliance and operational procedures as a whole. The distinction lies in the scope and purpose: the review is specifically geared towards understanding and assessing risks, while an audit encompasses a broader evaluation.

This context underscores the importance of continuously aligning the review process with risk assessment as part of a comprehensive AML program, to ensure that all potential risks are systematically identified and managed.