Risk & ECDD

Guided Risk Assessment
with Automatic ECDD Triggers

A structured risk rating wizard that captures the rationale behind every risk decision. Automatic triggers escalate matters to Enhanced CDD when needed — with source of funds, source of wealth, and senior approval workflows.

Overview

How It Works

Every in-scope matter requires a risk assessment under Tranche 2. Sentine's risk wizard guides your team through a multi-factor scoring framework, capturing the rationale behind every rating decision. This isn't a black-box score — it's a documented, defensible assessment.

When risk indicators are present — high-risk jurisdictions, complex ownership structures, PEP associations, adverse media, third-party payers, or unusual urgency — the system automatically triggers Enhanced Customer Due Diligence (ECDD). This creates structured workflows for source of funds documentation, source of wealth verification, and senior management sign-off.

The ECDD case tracks required actions, their completion status, and the final decision with rationale. Senior approval routing ensures that high-risk matters receive appropriate oversight before the engagement can proceed.

Workflow

Step by Step

Follow the structured workflow from start to finish.

01

Risk Factor Assessment

Evaluate customer, geographic, product/service, and delivery channel risk factors using the guided wizard framework.

02

Rationale Capture

Document the reasoning behind each risk factor assessment. Mandatory rationale ensures every decision has an evidence trail.

03

Risk Rating Assignment

Assign a low, medium, or high risk rating based on the assessed factors. The rating drives ongoing CDD frequency and ECDD requirements.

04

ECDD Trigger Evaluation

Automatic evaluation of ECDD triggers. If high-risk indicators are present, an ECDD case opens automatically with required actions.

05

ECDD Completion & Approval

Complete source of funds/wealth documentation, additional verification, and route to senior management for approval on high-risk matters.

Capabilities

Key Features

Everything you need for this workflow, built into the platform.

Multi-Factor Risk Wizard

Guided framework covering customer type, geographic risk, product complexity, delivery channel, and transaction patterns.

Automatic ECDD Triggers

System evaluates risk indicators and automatically opens ECDD cases when thresholds are met. No manual trigger required.

Source of Funds Workflow

Structured documentation workflow for capturing and evidencing source of funds information for high-risk matters.

Source of Wealth Verification

Separate workflow for verifying source of wealth — distinct from source of funds — with supporting evidence capture.

Senior Management Approval

Route high-risk and ECDD matters to senior management for approval. Capture approver identity, timestamp, and decision notes.

Mandatory Rationale

Every risk rating requires documented rationale. No risk decision can be saved without explaining why.

Regulatory Context

Risk Assessment Under Tranche 2

The AML/CTF Act requires reporting entities to assess and manage money laundering and terrorism financing risks. For high-risk matters, Enhanced CDD — including source of funds and source of wealth investigations — must be conducted before proceeding. Sentine captures every risk decision with rationale, creating a defensible record of your firm's risk management procedures.

  • Risk-based approach: low, medium, high ratings with documented rationale
  • ECDD required for high-risk indicators (PEP, high-risk jurisdictions, complex structures)
  • Source of funds and source of wealth are distinct ECDD requirements
  • Senior management approval for high-risk customer relationships

Make Risk Decisions Defensible

Guided risk assessment with automatic ECDD triggers and complete rationale capture.

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