An Enterprise-Wide Risk Assessment (EWRA) helps financial institutions identify and mitigate money laundering risks.
Option B (Correct): Wolfsberg Group and FATF emphasize that an EWRA should focus on higher-risk customers, products, and geographies, ensuring appropriate controls are in place.
Option A (Incorrect): Institutions should not blindly adopt third-party frameworks without customizing them to their specific risk exposure.
Option C (Incorrect): While new clients are important, an EWRA must assess risks across all customers and transactions.
Option D (Incorrect): EWRA must address residual risk, not just inherent risk. Effective mitigation strategies are essential.