The Wolfsberg Group has published updated guidance on the risk-based approach to financial crime risk management, setting out the collective view of its 12 member banks on how financial institutions should build programmes that are proportionate, prioritised and effective. The update refreshes the Group’s work on the risk-based approach dating back to 2006 and provides a practical framework for embedding risk-based decision-making across policies, controls, governance and resource allocation. The guidance reflects growing pressure on firms to show effectiveness, support financial inclusion, respond to changing threats and use new technologies. Its core message is that institutions should concentrate attention and resources on the highest-priority risks and stop, reduce or redesign activities that do not materially strengthen financial crime controls. It also says an effective risk-based approach depends on more than risk assessments and controls, highlighting the importance of governance, clear risk appetite, public-private collaboration, risk-based supervision, training and culture.
The Wolfsberg Group2026-06-23
The Wolfsberg Group updates guidance on the risk based approach for financial crime risk management
The Wolfsberg Group has issued updated guidance on the risk-based approach to financial crime risk management, reflecting the collective view of its 12 member banks. The guidance updates work dating back to 2006 and says firms should focus resources on the highest-priority risks while scaling back activities that do not materially improve outcomes. It also highlights governance, risk appetite, supervision, training and culture as key to an effective approach.