Glossary
Risk-based approach
The risk-based approach means applying controls in proportion to risk: more scrutiny for higher-risk customers, products, channels and countries, simplified measures where risk is low. It rests on a documented risk assessment and is the basis of FATF standards.
Why it matters for brokers and payment firms
It shapes rule thresholds, review depth and customer segmentation. SAMA's Section 7 and the CBUAE guidance both expect monitoring to follow the firm's own risk assessment.