What should be considered to determine if all AML risk exposures were identified?

To determine if all AML (Anti-Money Laundering) risk exposures have been identified, sector regulation and internationally applicable standards play a crucial role. These regulations and standards provide a comprehensive framework that outlines the expectations and requirements for identifying and managing AML risks. They help financial institutions and businesses understand the specific vulnerabilities associated with money laundering and terrorist financing in their sector, thus ensuring a robust approach to risk assessment.

By adhering to these external guidelines, entities can benchmark their practices against industry standards and regulatory expectations. This ensures that all potential risk exposures are being thoroughly considered during the identification process.

While internal policies and procedures, past audit findings, and training programs are certainly important aspects of an organization’s overall AML strategy, they may not capture the broader, evolving nature of risks that cross geographic and sectoral boundaries as effectively as sector regulations and internationally accepted standards. These regulations offer a global perspective and best practices, which can lead to a more comprehensive identification of AML risk exposures.