A risk‐based approach to AML : A controversy between financial institutions and regulators

Purpose – The purpose of this paper is to present a risk‐based approach to anti‐money laundering (AML) systems. Design/methodology/approach – The paper covers the areas of: customer due diligence, customer acceptance, risk management and implementation. Findings – Regulators and financial institutions need to co‐operate so that AML standards can be set within a risk‐based approach, thus enabling a country to protect itself in the best possible and affordable way. Originality/value – The paper outlines the controversy present between financial institutions and regulators in the approach to AML.