Risk-Based Scorecard in AML Transaction Monitoring Tool

What is a Risk-Based Score-Card?


All financial transactions that your business mediates carry the risk of money laundering, terrorist financing, corruption, bribery, and human trafficking. Therefore, process transaction monitoring is a legal requirement for businesses under AML obligations. There are many stages of transaction monitoring and one of these stages is Risk-Based Score-Card.


Businesses should conduct risk assessments that will create a risk level for each of their customers. It is used to visualize strategy and risk management data with Risk-Based Performance Management and to inform the decision making process. Many factors affect the goals and objectives of an enterprise, thus contributing to the need for change. Risk-based assessment can be used as part of optimizing your screening and monitoring processes. Existing KYC processes such as CDD or EDD can be used while creating risk levels for each customer. To fully protect businesses, risk management needs to cover more than traditional financial concerns. Instead, organizations need to apply a broader “risk-based Score-Card” approach to risk management.


Why is a Risk-Based Score-Card Important?


Businesses are laundering money laundering threats, with the development of technology, modern financial crimes are increasing, and businesses need some software technologies to prevent these crimes. Enterprises adopt risk management, an AML compliance program, to analyze the individual risk levels offered by their customers. One of the most important responsibilities of businesses to the organizations they serve is corporate risk management. An enterprise has focused more on risk management to adapt to its business goals quickly. They should apply a “Risk-Based Score-Card ” approach to help businesses focus on managing risk better.


Businesses are laundering money laundering threats, with the development of technology, modern financial crimes are increasing, and businesses need some software technologies to prevent these crimes. Enterprises adopt risk management, an AML compliance program, to analyze the individual risk levels offered by their customers. One of the most important responsibilities of businesses to the organizations they serve is corporate risk management. An enterprise has focused more on risk management to adapt to its business goals quickly. 


How Risk-Based Score-Card  Works?


Three score-card applications are generally used to visualize strategy and risk management data with Risk-Based Performance Management methodology and to inform the decision-making process. Score-cards have similar structures, but different content


Performance Score-card: The Performance Scorecard determines and delivers the goals of businesses, the person responsible for the goals, appetite alignment status, aggregate goal scorer, key performance indicators (KPIs).


Risk Score-card: The Risk Scorecard includes the main risk of organizations, the person responsible for each risk, the appetite alignment status, the combined risk score, key risk assessment data, current risk exposure, basic risk indicators, and score.


Check Score-card: It will include the business's critical controls, the person responsible for each Control, the bulk control score, key control evaluation data, critical control ındicator data, and score.



Sanction Scanner AML Transaction Monitoring tool provides solutions to strengthen AML compliance of businesses in any industry, regardless of size or size. With dynamic rules and scenarios, a sandbox testing environment, real-time alarms, powerful alarm management, and many advanced features, you can make your AML control processes automatic and efficient.  Thus, you can protect your business from potential financial crime risks and regulatory penalties. You can contact us for detailed information about our AML Transaction Monitoring tool.








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