Risk Based Approach and High Risk Customers

Risk Based Approach and High Risk Customers is Course 3 of 6 in the StudyAML British Virgin Islands Series. This course explains how firms should identify, assess, and manage higher risk customers in line with the BVI AML framework and FATF standards. It focuses on judgment, escalation, and proportionate controls in real world compliance scenarios. Practical risk decisions. Clear accountability. Defensible outcomes.

20 - 25 minutes

Certificate Included

British Virgin Islands

Description

This self paced course is designed for compliance staff, relationship managers, and senior management working within or supporting regulated financial services businesses. Delivered in approximately 20 to 25 minutes, the course examines how the risk based approach operates under the British Virgin Islands AML and CFT regime, and how it aligns with international expectations set by the Financial Action Task Force (FATF). Learners will explore how enterprise wide and customer level risk assessments are structured, which risk factors must be considered by law, and how higher risk relationships should be identified and managed. The course covers politically exposed persons, high risk jurisdictions, and situations that require enhanced due diligence, escalation, and senior management approval. Through practical examples and realistic scenarios, the course explains how risk decisions are made, documented, and reviewed in practice. Emphasis is placed on professional judgment, clear rationale, and regulatory defensibility, helping learners understand not only what is required, but how to apply requirements effectively within the BVI regulatory environment.

What will you learn?

Module 1: The Risk Based Approach ExplainedThis module explains the legal and regulatory basis for the risk based approach under the BVI AML framework, its alignment with FATF standards, and how enterprise wide risk assessments support consistent and proportionate controls across a business.
Module 2: Customer Risk AssessmentThis module focuses on how customer risk is assessed in practice, including required risk factors such as customer type, jurisdiction, products, and delivery channels, and how these factors combine to form defensible risk ratings.
Module 3: Politically Exposed PersonsThis module explains how politically exposed persons are defined under BVI law, the different categories of PEPs, and the enhanced due diligence measures expected by regulators to manage corruption and bribery risk.
Module 4: High Risk JurisdictionsThis module examines how FATF country risk lists are used, the obligations placed on BVI regulated entities, and how firms should apply enhanced controls to customers and transactions connected to higher risk jurisdictions.
Module 5: Risk Escalation and ApprovalThis module covers when and how risk must be escalated, the role of senior management in approving higher risk relationships, and the importance of clear documentation to demonstrate sound governance and regulatory compliance.