Glossary > Risk-based approach (RBA)

Risk-based approach (RBA)

What is a risk-based approach (RBA)?

Adopting a risk-based approach (RBA) means that entities or governments understand their level of exposure to money laundering and terrorism financing risks. They will put in place appropriate AML/CFT measures to effectively mitigate these risks.

A virtual asset service provider (VASP) can adopt an RBA by implementing steps to mitigate the risks inherent to cryptocurrencies. They can for example implement KYC processes, appoint a compliance officer, or use transaction monitoring tools.

Scorechain can help VASPs implement a risk-based approach to transaction monitoring thanks to its comprehensive crypto AML compliance solution.