Risk-Based Scorecard in AML Transaction Monitoring Tool

What Is a Risk-Based Scorecard?


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 Scorecard" 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 comply with risk management, an AML compliance program, to analyze their customers' individual risk levels.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.


With a risk-based scorecard review, you can strengthen your business with more control compatibility, fine-tune your risky customers while scanning your customers and learn more about them, can make advanced risk assessments based on criteria such as country, currency, and customer segment and also can use these risk assessment criteria in your rules.


How Risk-Based Score-Card  Works?


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


Performance Scorecard: 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 Scorecard: 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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