According to the risk-based approach, financial institutions should apply enhanced due diligence and

ongoing monitoring to higher-risk clients, and take appropriate measures to mitigate the risks of

money laundering and terrorist financing. If the client exceeds the criteria of an acceptable risk

model created by the institution, the institution shouldcommunicate the issues to the client and

request remedial actions, such as providing additional information, documentation, or evidence of

compliance. If the client does not cooperate or comply with the institution’s requirements, the

institution should consider terminating the relationship with the client, as the risk may outweigh the

benefits of continuing the business relationship.

ACAMS CAMS Certification Package - 6th Edition, Chapter 2: Risk Assessments, pp. 51-521

ACAMS CAMS Certification Package - 6th Edition, Chapter 4: Customer Due Diligence, pp. 97-981

ACAMS CAMS Certification Video Training Course, Module 2: Risk Assessments, Lesson 2.3: Risk-

Based Approach2

ACAMS CAMS Certification Video Training Course, Module 4: Customer Due Diligence, Lesson 4.3:

Enhanced Due Diligence

Reference: http://www.fatf-gafi.org/media/fatf/documents/reports/Risk-Based-Approach-BankingSector.pdf