Which of the following are part of a risk-based approach? (Choose three.)
A.
Performing a comprehensive risk assessment to identify customer, transaction, and geographic risks
B.
Focusing monitoring primarily on previously flagged customers while using standard controls for others
C.
Choosing and applying effective controls that align with the identified risk levels
D.
Determining detailed risk profiles for customers based on their activities and relationships
E.
Allocating resources equally across all customer segments to ensure fairness
The Answer Is:
A, C, D
This question includes an explanation.
Explanation:
A risk-based approach involves conducting a comprehensive risk assessment, applying controls that match the identified risk levels, and creating detailed customer risk profiles to focus monitoring and resources where they are most needed to mitigate financial crime risks effectively.
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