What might be one effect of a high-risk event on the AML audit process?

One effect of a high-risk event on the AML audit process is changes in priority focus. When a high-risk event occurs, such as a major financial crime incident or regulatory change, it often necessitates immediate action and reassessment of the audit strategy. The audit team must prioritize areas that are considered higher risk to address the specific threats and vulnerabilities highlighted by the event.

This shift in focus can lead to a more in-depth examination of certain transactions, customer due diligence processes, or compliance with regulatory requirements that may be under scrutiny. The goal is to ensure that the organization is not only adhering to existing protocols but is also proactively mitigating risks associated with emerging threats. Therefore, adapting the audit priorities allows the AML team to effectively allocate resources and efforts to where they are most needed, enhancing the overall risk management framework of the organization.