Endeavors such as correspondent banking and financial inclusion are essential tools in global finance. However, these clients can put financial institutions on shaky ground. For starters, these accounts may present greater potential for corruption or terrorist financing. They may also be situated in certain jurisdictions that are internationally recognized as having lax anti-money laundering standards and insufficient regulatory supervision. Banks are expected to have a healthy risk appetite while keeping an eye out for illicit financial activity. But when does a client become too risky? Join this webinar and our seasoned experts as they discuss best practices for managing high risk clients and de-risking.
Performing an institutional assessment to determine risk appetite and tolerance in areas such as product lines and geographic footprint to create uniform risk management protocols.
Developing quantitative and qualitative metrics for risk rating models in order to flag high-risk entities and assign adequate oversight controls such as enhanced due diligence and triggered reviews as warranted.
Establishing policies for reviewing high-risk accounts to update risk profiles, evaluate issues such as aberrant account activity and adjust terms of client engagement as warranted.