Lower-risk customers can be risk managed using a "category of customers" approach, but can higher-risk customer types be managed the same way? The "Joint Statement on the Risk-Based Approach to Assessing Customer Relationships and Conducting Customer Due Diligence," issued cooperatively by multiple federal agencies, emphasized the importance of managing high-risk customer types, but not every company can do so. As a result, we will examine new strategies for dealing with high-risk customer types and industries.
Reviewing the joint statement on the risk-based approach to evaluating customers
Assessing the unique risk attached to cannabis-related businesses, online gaming firms, adult entertainment and cryptocurrency firms
Using risk appetite limits, disclosures, enhanced due diligence and information-sharing agreements to reduce the inherent risk