KYC Compliance Risk Level Calculator
Assess the KYC compliance risk level of a customer based on key due diligence factors including country risk, business type, transaction volume, PEP status, and adverse media exposure.
Formula
Composite Risk Score (CRS) is calculated as a weighted sum of normalised factor scores:
CRS (0–100) = 100 × [ (0.25 × Ncountry) + (0.20 × Nbusiness) + (0.15 × Ntxn) + (0.20 × Npep) + (0.15 × Nadverse) + (0.05 × Nsource) ]
Where each Nfactor = Raw Score ÷ Maximum Raw Score for that factor (normalised to 0–1).
Transaction Volume Scoring:
Risk Level Thresholds:
Automatic Escalation Rules: Sanctions/Watchlist match forces score ≥ 75; Foreign PEP forces score ≥ 65, regardless of weighted calculation.
Assumptions & References
- Methodology is based on a risk-based approach (RBA) as recommended by the Financial Action Task Force (FATF) Recommendations (2012, updated 2023).
- Country risk ratings align with FATF Grey List / Black List designations and the Basel AML Index.
- PEP definitions follow FATF Glossary and the EU's 4th/5th/6th Anti-Money Laundering Directives (AMLD).
- Source of funds documentation requirements follow FATF Recommendation 10 (Customer Due Diligence).