Wolfsberg Group updates its RBA guidance, urging FIs to replace tick-box compliance with a more proportionate, prioritised, and outcome-focused approach to FC risk management

The updated guidance builds on Wolfsberg’s 2025 Statement on the Risk-Based Approach and aligns with FATF’s revisions to Recommendation 1, framing the RBA around proportionality, prioritisation and effectiveness. It encourages financial institutions to use risk assessments to calibrate controls, move resources away from low-value activity, support financial inclusion and develop a common understanding of risk with supervisors, law enforcement…