One of the key components of a BSA/AML program is the risk assessment. Every financial institution should take a good look at their products and services and consider how those could potentially be used for money laundering and/or other types of illegal activity. So, in the case of your lending activities, how could someone use a loan to launder money through your bank via a loan? Once the risks are assessed, you can determine what mitigating factors may need to be employed to reduce the risk. For this reason, the risk assessment essentially drives your entire BSA/AML program.
Kevin explains more in the video.
