The risk rating checklist is the structured assessment you fill in for every screening. It computes the client's risk level, which drives both the re-screening cadence and whether an EDD case auto-opens.
The Four Risk Levels
- High - elevated exposure. High-risk PEPs, high-risk geographies, complex beneficial ownership. Re-screening: every 12 months. High-risk PEPs and HIOs auto-open an EDD case.
- Medium - moderate exposure. Re-screening every 2 years.
- Low - typical retail client. Re-screening every 3 years.
- None - no recurring re-screening scheduled. Use sparingly.
The level is computed from the factors you tick, not picked manually.
Risk Factors That Push The Level Up
Examples of factors that contribute to a higher risk level:
- Client is a PEP (Politically Exposed Person).
- Client is a family member or close associate of a PEP.
- Client is from a high-risk geography (FATF-listed jurisdictions).
- Complex beneficial ownership structure (multiple layers, holdco, etc.).
- Cash-intensive business as primary income source.
- Unusual transaction patterns in their financial history.
Tick every factor that applies - being thorough here is the point.
Mitigation Flags
Some flags reduce risk:
- Long-standing client relationship.
- Verified source of funds.
- Documented source of wealth.
Mitigation flags can pull a Medium rating down to Low. They can't fully neutralize a High rating, but they do get factored into your overall record.
What Auto-Triggers An EDD Case
An Enhanced Due Diligence (EDD) case opens automatically when:
- A high-risk PEP is confirmed.
- A foreign PEP is confirmed (even at lower risk levels).
- A family member or close associate of a PEP is involved.
- A head of an international organization (HIO) is confirmed.
EDD cases are handled at the brokerage admin level - see Managing EDD Cases.
How You Fill It In
The checklist is part of the new screening dialog. As you tick boxes, the computed level updates live on the right.
If you're not sure whether a factor applies, tick it. Over-rating is safer than under-rating from a compliance standpoint.
What To Do Next
- Run the screening with your completed checklist: Running A Screening On A Client.
- See the re-screening cadence: Re-Screening Frequency.