Financial crimes such as money laundering, fraud, cross-border scams, and the misuse of virtual assets are becoming more complex as technology continues to develop. This situation encourages financial institutions to strengthen their monitoring and risk management systems. At the October 2026 FATF Plenary, the Financi…
Financial crimes such as money laundering, fraud, cross-border scams, and the misuse of virtual assets are becoming more complex as technology continues to develop. This situation encourages financial institutions to strengthen their monitoring and risk management systems.
At the October 2026 FATF Plenary, the Financial Action Task Force (FATF) discussed several key topics to strengthen global efforts against financial crime, including virtual asset monitoring, addressing fraud and cross-border scams, and improving the effectiveness of the Risk-Based Approach (RBA). This makes RBA increasingly important in strengthening AML systems.
For Indonesia, these developments are relevant as the country prepares for the FATF Mutual Evaluation in 2029/2030. As financial crimes become more complex, institutions need monitoring systems that can adjust the level of checks based on the risks associated with each customer and transaction activity. This is why the Risk-Based Approach (RBA) is becoming increasingly important in strengthening AML systems.
Understanding RBA and Its Implementation Challenges
The Risk-Based Approach (RBA) is an approach used in Anti-Money Laundering (AML) systems to help financial institutions identify and assess the risks of money laundering and terrorist financing.
The main principle is that monitoring and control measures should be adjusted based on the level of risk. Based on risk assessment results and applicable regulations, high-risk customers may require more detailed checks through Enhanced Due Diligence (EDD), in line with the assessment results and applicable requirements.
Although the concept may sound simple, its implementation comes with challenges. Risk assessment requires accurate and complete customer data. Limited resources and differences in regulations across countries can also make it difficult for financial institutions to apply consistent monitoring.
The Role of Technology in Supporting RBA Implementation
Implementing the Risk-Based Approach (RBA) requires accurate data, proper assessment processes, and continuous risk monitoring. Technology such as Regulatory Technology (RegTech) can help integrate these processes, making risk management and compliance more structured.
One example is SIJITU Risk Management, which supports risk assessment and management based on the Risk-Based Approach (RBA).
Want to learn more about the challenges of implementing RBA and how SIJITU supports this process? Read the full discussion on SIJITU's LinkedIn!
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