# AML Risk Scoring

### About AML risk scoring

AML Risk Scoring generates a **customer AML risk rating** (risk profile) for **KYC/AML compliance**.

It enables you to run a consistent AML risk assessment and to trigger **Customer Due Diligence (CDD)** or **Enhanced Due Diligence (EDD)**.

It’s designed for both **individuals** and **businesses (KYB)**.

![AML Risk Scoring - Preview](https://content.gitbook.com/content/KyFKMqftsmT6qln9zo5y/blobs/tKr3rS3AsK7frS2vMCxv/aml-risk-view.png)

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**Country risk** scores are fully customizable in the Portal. Align them to your internal AML risk framework and policies.
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### Common use cases

Use AML Risk Scoring in any flow where you need a defensible **customer risk rating**:

* **KYC onboarding**: Create a baseline AML risk profile at account opening.
* **CDD/EDD decisioning**: Step up evidence requirements for higher-risk customers.
* **Ongoing monitoring**: Re-score customers after changes to key identity attributes.

### Interactive demo

{% @arcade/embed url="<https://app.arcade.software/share/DWMvWohgs2VNLqLnYNuM>" flowId="DWMvWohgs2VNLqLnYNuM" %}

### AML risk score elements

The AML Risk Profile includes the elements below. Each element returns **High**, **Medium**, or **Low** when applicable. It returns **No Risk** when not detected.

<table><thead><tr><th width="216.40234375">Element</th><th>Description</th></tr></thead><tbody><tr><td><strong>Overall Risk</strong></td><td>A weighted score that combines all available risk elements into a single AML risk indicator (customer risk rating).</td></tr><tr><td><strong>Political Exposure Risk</strong></td><td>When a customer is confirmed as a <a href="../watchlist-pep-and-adverse-media/aml-screening-check">Politically Exposed Person (PEP)</a>, this represents the calculated political exposure risk level.</td></tr><tr><td><strong>Occupation Risk</strong></td><td>When a customer is confirmed as a <a href="../watchlist-pep-and-adverse-media/aml-screening-check">Politically Exposed Person (PEP)</a>, this represents the calculated occupation risk level.<br><br>Certain occupations are considered higher risk due to their potential influence and exposure to corruption.</td></tr><tr><td><strong>Watchlist Risk</strong></td><td>When a customer is confirmed to be on a <a href="../watchlist-pep-and-adverse-media/aml-screening-check">sanctions list or watchlist</a>, this represents the calculated watchlist risk level.</td></tr><tr><td><strong>Country Risk</strong></td><td><p>Evaluates the customer’s address, nationality, birth country, and incorporation country (for businesses).</p><p>ComplyCube calculates the score using data from industry-recognized bodies, including:<br></p><ul><li>Corruption Perceptions Index</li><li>Federal Bureau of Investigation (FBI)</li><li>Financial Action Task Force (FATF)</li><li>FinCEN</li><li>Freedom House</li><li>Index of Economic Freedom</li><li>International IDEA Political Finance Database</li><li>Organization for Economic Co-operation and Development</li><li>Transparency International</li><li>US Department of State</li><li>World Bank Group</li><li>World Economic Forum</li></ul><p>This can also be <strong>customized</strong> to align with your own assessment criteria.</p></td></tr></tbody></table>

### Triggers

The AML Risk Profile is automatically refreshed:

1. **After check completion**: Once a check is successfully completed and validated.
2. **After workflow completion**: When a workflow session finishes.
3. **When customer details change**: Updates to client information trigger a recalculation of the risk profile.

### Related checks

AML Risk Scoring is typically used alongside:

* [AML Screening Check](https://docs.complycube.com/documentation/product-guides/watchlist-pep-and-adverse-media/aml-screening-check) for sanctions, watchlist, PEP, and adverse media screening.
* [Custom Lists](https://docs.complycube.com/documentation/product-guides/watchlist-pep-and-adverse-media/custom-lists) to screen customers against your internal watchlists and risk lists.

### Related topics

Use these to operationalize AML risk scoring inside an onboarding and decision flow:

* [Workflows](https://docs.complycube.com/documentation/product-guides/compliance-studio/workflows) to orchestrate screening and other checks in a single customer journey.
* [Smart Forms](https://docs.complycube.com/documentation/product-guides/compliance-studio/smart-forms) to capture additional customer information and supporting evidence.
* [Compliance Policies](https://docs.complycube.com/documentation/product-guides/compliance-studio/policies) to apply consistent CDD/EDD rules using the risk ratings.