Risk Based Approach and the Importance of Due Diligence

MQF Level 5


Risk Based Approach and the Importance of Due Diligence

October 2024
Module Type
6 sessions
ECTS Credits
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Module Description

This module aims to educate students on the importance of adopting a risk-based approach to mitigate organizational and national risks effectively.

Students will learn how a risk-based approach can be a valuable tool in identifying and managing risks at both organizational and national levels. The module will provide a comprehensive understanding of high-risk customers and the importance of conducting rigorous due diligence processes.

By exploring these concepts, students will be equipped with the knowledge and skills necessary to implement effective risk management strategies and ensure compliance with regulatory requirements in combating money laundering and terrorist financing activities.

Entry Requirements

Candidates who apply for this course must possess the following: 

  • a qualification at MQF Level 4 (one A-level or equivalent in any subject);


  • a pass in English Language and Mathematics at MQF Level 3 (O-level or equivalent).  

Target Audience

  • This programme is targeted at people within the financial and banking sector, as well as other individuals seeking professional and academic advancement in AML and compliance.  

Module / Unit Instructions

The proposed structure comprises a blended approach promoting the building of a community of practice via peer-to-peer learning. The structure uses primarily two dimensions of teaching-learning modes:

  • Face to Face sessions

Face-to-face sessions include lectures, tutorials, discussions, presentations and workshop activities promoting peer-to-peer learning.

  • Online Learning Activities

Online learning activities incorporate tutorials and asynchronous discussions. These may consist of active interaction, participation and contributions in fora discussions, sharing resources and self-reflection exercises. Learners also contribute to the building of the community of practice by providing feedback to their peers as critical friends, enhancing the learner’s critical engagement throughout the study period.

How you’ll be assessed

The course comprises:

  • Evening classes for part-time courses.
  • Classes held throughout the day for full-time courses.
  • Guided learning, presentations, comprising synchronous online discussions, tutorials and/or videos.
  • Self-study hours comprising research, reading and assignment work.


Assessment is carried out via two mandatory components:

  • Assessment 1
  • Assessment 2

The programme includes different forms of assessment which allow for and promote students’ critical engagement. The assessment tasks may include an in-class assignment and/or a home-based written assignment using diverse assessment tools which may take the form of online and in-class discussions, examinations, case studies, reports, proposals, essays, and presentations, etc., as applicable to the diverse modules. 


Module Intake Dates

October 2024

Learning Outcomes


At the end of the module/unit the learner will have acquired the responsibility and autonomy to:

  • xamine the risk-based approaches.
  • Discuss what constitutes high risk and what type of risks exists.
  • Identify who are the high-risk customers and the high-risk businesses and how to mitigate this risk.
  • Be able to align the operations and due diligence with the risk profile.
  • Be able to discuss the importance of monitoring regulating and reviewing high-risk customers periodically.


At the end of the module/unit the learner will have been exposed to the following:

  • Identify gaps or opportunities in anti-money laundering and combating the funding of terrorism policies, procedures and processes.
  • Describe the process behind making informed decisions about risk appetite, implementation of control efforts and allocation of resources.
  • Identify how the structure of a business unit or business aligns its AML compliance program with its risk profile.
  • Develop comprehensive understanding of what the risk-based approach involves.
  • Understanding ML risks.
  • Understanding TF risks.
  • ML/TF vulnerabilities, threats and risks.
  • Addressing and understanding the residual risk.
  • Due diligence.


At the end of the module/unit the learner will have acquired the following skills:

  • Analyse the high-level principles involved in applying the risk-based approach.
  • Indicate good public and private sector practice in the design and implementation of an effective risk-based approach.
  • Be able to identify complex, unusual, suspicious transactions and activities.
  • Develop risk mitigation strategies, including applicable internal controls, to lower residual risk exposure.

Module-Specific Digital Skills and Competences:

The learner will be able to:

  • Navigate through the online learning platform to benefit from assignments, discussion boards, literature, tutorials etc.
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