Nature and Purpose Risk Profile

Risk Assessment | Anqa Compliance

How It Works

Our Nature and Purpose tool gives you a framework to understand customer behaviour patterns. It tracks what customers say they'll do against what they actually do, helping you spot when something's off — without drowning in false alarms.

Behaviour Patterns

Build a picture of normal activity for each customer based on their actual transactions and usage patterns.

Purpose vs. Practice

Compare stated account purpose with real activity. When they diverge significantly, you'll know to take a closer look.

Risk Scores That Evolve

Customer behaviour changes — so should their risk rating. Our system updates scores based on actual activity, not just initial assessment.

Meaningful Alerts

Flag genuine anomalies, not every variation. Because you need to investigate real risks, not normal business fluctuations.

Risk Assessment That Makes Sense

Every regulator asks the same question: do you understand your customers' purpose and behaviour? But how do you spot when the shop owner who needed an account for 'inventory management' is actually running money transfers on the side?

Risk Profile: James Mwangi Trading Ltd

Stated PurposeRetail Inventory Management
Current Risk Score68/100
Previous Score42/100
Account Age18 months
Expected Monthly Volume$5,000 - $8,000
Actual Monthly Volume$22,000 - $28,000
Transaction PatternHigh frequency small amounts
GeographyCross-border activity detected
Low Risk ← Customer Position → High Risk

Risk Factors

Volume Deviation
+280% above expected
Pattern Change
New transaction types detected
Geographic Risk
High-risk jurisdiction activity
Frequency Analysis
Unusual timing patterns
Recommendation: Enhanced monitoring required. Consider customer interview to understand business growth and new transaction patterns.

See It in Action

Find out how our risk assessment helps you meet regulatory requirements while actually understanding your customers.

Book a Demo
Nature & Purpose Risk Assessment - FAQ | Anqa Compliance

Nature & Purpose Risk Assessment - FAQ

Understanding the "nature and purpose" of customer relationships is a critical component of Customer Due Diligence (CDD) that helps detect activity that doesn't match the expected profile.

In AML compliance, assessing the "nature and purpose" means understanding **why a customer is using your services and how they intend to use them**. It's a required part of Customer Due Diligence (CDD) that helps you detect activity that doesn't match the expected profile.

It helps identify whether a customer's behavior aligns with legitimate use. For example:

  • A student opening a high-volume business account may raise red flags
  • A foreign buyer purchasing property with no local ties may require EDD Understanding context lets you assign an appropriate risk level and catch unusual patterns early.

    • Anqa's platform guides you to collect answers to key questions like:

  • What services is the customer seeking?
  • What is the source of their income or funds?
  • Are they acting on behalf of someone else?
  • Is the activity consistent with their profile or profession?
  • Are there any geographic or sector-based risks involved? You don't need to ask everything at once—but you should collect enough to understand the client's intent.

    • Yes, though the **depth of assessment depends on the risk level**. For low-risk clients, a few simple onboarding questions may suffice. For higher-risk customers, especially those involving cross-border transactions, trusts, or large payments, a more detailed understanding is essential.

    Anqa automates this step by:

  • Embedding smart intake questions during onboarding
  • Simplified nature and purpose for straight forward customer relationships
  • Detailed nature and purpose module within the customers KYC profile for easy reference
  • Logging responses for audits and reviews This reduces the chance of missing key context while keeping workflows lightweight.

    • Not exactly. The nature and purpose check is a **component of your overall AML risk assessment**. It informs how you categorise the customer (low, medium, or high risk), and whether Enhanced Due Diligence (EDD) is needed. It complements other checks like KYC, sanctions screening, and transaction monitoring. A risk assessment will relate to your business specific risks.