# AML Risk Scoring

### AML Risk Scoring Overview

AML Risk Scoring generates a **customer AML risk rating** for **KYC and KYB compliance**.

It supports a consistent **AML customer risk assessment** across onboarding and ongoing monitoring. Use it to trigger **Customer Due Diligence (CDD)** or **Enhanced Due Diligence (EDD)** based on risk.

AML Risk Scoring supports both **ComplyCube’s native risk scores** and **custom risk models** tailored to your AML risk framework.

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

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<figure><img src="/files/gefgv8fQb6C4KPyTTUnZ" alt="" width="563"><figcaption><p>Example AML Risk Profile for an Individual</p></figcaption></figure>
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<figure><img src="/files/mmT1sSYjZtzst0zNXBl3" alt="" width="563"><figcaption><p>Example AML Risk Profile for a Business</p></figcaption></figure>
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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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To configure a fully flexible and comprehensive AML risk model that aligns with your AML and risk framework, contact your **Account Manager**.
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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.
* **KYB risk assessment**: Score businesses using incorporation, ownership, and granular risk dimensions.
* **CDD/EDD decisioning**: Step up evidence requirements for higher-risk customers.
* **Workflow decisioning**: Use AML risk to route customers through different workflows.
* **Dynamic questionnaires**: Use Smart Form responses to refine risk scores.
* **Ongoing monitoring**: Re-score customers after changes to key identity attributes.

### Interactive demo

{% @arcade/embed flowId="jkUkvzHPUA3J1MeMhKps" url="<https://app.arcade.software/share/jkUkvzHPUA3J1MeMhKps>" %}

### How AML risk scoring works for KYC and KYB

AML Risk Scoring generates an overall AML risk profile using two types of risk elements: [System risks](#system-risks) and [Custom risk](#custom-risk).

#### System risks

System risks are ComplyCube’s native AML risk indicators. These represent common compliance and fraud-related risk factors, including: [Political exposure (PEP)](#aml-risk-factors-and-scoring-elements), [Watchlist exposure](#aml-risk-factors-and-scoring-elements)**,** [Occupation risk](#aml-risk-factors-and-scoring-elements)**,** and [Country risk](#aml-risk-factors-and-scoring-elements)**.**

These risk scores are automatically calculated using customer details, verification results, and trusted external datasets.

#### Custom risk

Custom risk allows you to define your own risk elements and scoring logic, while ComplyCube performs the calculation and evaluation for you.

Custom risk can use:

* Customer profile data.
* [Smart Form](/documentation/product-guides/compliance-studio/smart-forms.md) (i.e. dynamic questionnaire) responses.
* Verification check results.
* Other captured customer attributes.

This enables businesses to implement organization-specific risk frameworks and decisioning logic.

#### Risk levels and overall scoring

Each risk element returns one of the following levels: **High**, **Medium**, **Low**, or **No Risk**.

The overall AML risk profile can then be calculated using one of two models:

* **Highest risk**: Uses the highest detected risk level as the overall result (default).
* **Weighted score**: Combines multiple risk elements into a single weighted result.

#### Automatic recalculation

The AML Risk Profile is automatically refreshed throughout the client lifecycle, including:

1. **After check completion**: Once a verification is successfully completed and validated.
2. **After workflow completion**: When a workflow session finishes.
3. **When customer details change**: Updates to customer information trigger a recalculation.
4. **When questionnaires or attestations are completed**: New submissions can trigger a recalculation of the score.

### AML risk factors and scoring elements

<table><thead><tr><th width="216.40234375">Element</th><th>Description</th></tr></thead><tbody><tr><td><strong>Overall Risk</strong></td><td>The final AML risk indicator for the customer. This can be calculated using either a <strong>weighted score</strong> model or a <strong>highest risk</strong> model. It defaults to the <strong>highest risk.</strong></td></tr><tr><td><strong>Political Exposure Risk</strong></td><td>When a customer is confirmed as a <a href="/pages/-M7JAF0I0xV8IXZOscPw#pep-levels-explained">Politically Exposed Person (PEP)</a>, this represents the calculated political exposure risk level.</td></tr><tr><td><strong>Occupation Risk</strong></td><td>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="/pages/-M7JAF0I0xV8IXZOscPw">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><tr><td><strong>Custom Risk</strong></td><td>Define your <strong>own risk elements and scoring logic</strong>, then let ComplyCube calculate the result on an ongoing basis, using customer data captured across ComplyCube.</td></tr></tbody></table>

### Related checks

AML Risk Scoring is typically used alongside:

* [AML Screening Check](/documentation/product-guides/watchlist-pep-and-adverse-media/aml-screening-check.md) for sanctions, watchlist, PEP, and adverse media screening.
* [Custom Lists](/documentation/product-guides/watchlist-pep-and-adverse-media/custom-lists.md) 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](/documentation/product-guides/compliance-studio/workflows.md) to orchestrate screening and other checks in a single customer journey.
* [Smart Forms](/documentation/product-guides/compliance-studio/smart-forms.md) to capture questionnaire data and other customer inputs used in custom risk.
* [Compliance Policies](/documentation/product-guides/compliance-studio/policies.md) to apply consistent CDD/EDD rules and feed policy outcomes into custom risk.


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