18. Credit and financial institutions should set out in their policies and procedures how they …

Credit and financial institutions should set out in their policies and procedures how they adjust the level and intensity of monitoring in a way that is commensurate with the ML/TF risk asso-ciated with the customer and in line with the customer’s r isk profile, as set out in the EBA ’s risk factors guidelines and in particular guidelines 4.69 to 4.75. To effectively manage ML/TF risk associated with a customer, monitoring should at least include the following steps:

• a. setting expectations of the customer’s behavio ur, such as the likely nature, amount, source and destination of transactions, so as to enable the institution to spot unusual transactions.
• b. ensuring that the customer’s account is reviewed regularly to understand whether changes to the c ustomer’s risk profile are justified.
• c. ensuring that any changes to the previously obtained CDD information that might af-fect the institution’s assessment of the ML/TF risk associated with the individual busi-ness relationship are taken into account.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/