> ## Documentation Index
> Fetch the complete documentation index at: https://docs.clearaml.com.au/llms.txt
> Use this file to discover all available pages before exploring further.
# Automate client risk scoring and AML assessments
> ClearAML scores every client as Low, Medium, or High risk based on client type, industry, geography, and other AML/CTF factors, with PDF report generation.
Risk assessments are a core AML/CTF requirement for Tranche 2 professionals. ClearAML walks you through a structured questionnaire for each client type and automatically calculates a risk rating — Low, Medium, or High — based on the answers. Completed assessments are stored permanently on the client's profile and can be exported as a PDF for your compliance file.
## The risk assessments dashboard
Navigate to **Dashboard → Risk Assessments** to see assessments across all clients. The dashboard shows four summary tiles:
The total number of assessments on file, across all clients and risk levels.
Clients currently rated High risk. Click to filter the table to this group.
Clients currently rated Medium risk.
Clients who have been verified but have not yet had a risk assessment completed.
The table is sortable by client name, status, risk level, last assessed date, and next review date. Use the search bar to find a specific client, and use the Risk and Status dropdowns to filter the list.
## How risk scoring works
ClearAML uses a structured risk engine that scores clients across multiple factors. The factors assessed depend on the client type.
The questionnaire for individual clients considers:
* **Nationality and residential country** — residence or citizenship in a FATF grey- or black-listed jurisdiction increases risk.
* **Countries of operation / wealth origin** — countries where the client earns income or holds assets.
* **Occupation / industry** — certain occupations carry inherently higher money-laundering exposure.
* **Source of funds** — employment, business income, investments, inheritance, crypto, or other.
* **Annual income** — higher income bands are weighted differently.
* **Onboarding channel** — face-to-face onboarding is lower risk than purely digital.
* **PEP status** — whether the client is a Politically Exposed Person.
* **Adverse media** — whether negative news coverage has been recorded.
The questionnaire for company clients considers:
* **Industry risk** — Low, Medium, or High based on ANZSIC code and business activity.
* **Turnover band** — the scale of the business's financial activity.
* **Ownership opacity** — transparent, opaque, or complex beneficial ownership structures.
* **Countries of operation** — whether the business operates in high-risk jurisdictions.
* **Financial health** — good, average, poor, or unknown.
* **Registry discrepancies** — whether ASIC records match the information provided.
* **Adverse media** — number and nature of adverse media hits.
* **PEP controllers** — whether any directors or controllers are PEPs.
* **Large cash acceptance** — whether the business accepts large cash payments.
* **Primary customer base** — Australian business, international business, or retail consumers.
Trusts and partnerships are assessed on factors including:
* **ABN status and verification** — whether the entity's ABN is active and matches records.
* **Business activity** — the nature of the trust or partnership's operations.
* **Annual revenue** and **transaction volume**.
* **Business age** — established entities carry lower risk than newly formed ones.
* **Ownership clarity** — transparent, some opacity, or opaque.
* **Regulatory status** — regulated, self-regulated, or unregulated.
* **Source of capital**.
* **PEP-associated partners** — whether any partners are Politically Exposed Persons.
* **Countries of operation**.
Cooperatives, associations, joint ventures, government agencies, and foreign branches are assessed on:
* **Business type and structure clarity**.
* **Beneficial ownership** — all identified, most identified, some unclear, or unknown.
* **Key decision-maker KYC** — proportion of decision-makers who have been verified.
* **Governance documentation** — bylaws/charter, some documentation, informal, or none.
* **Jurisdiction and industry risk**.
* **Regulatory and registration status**.
* **Business legitimacy** — publicly verifiable, documented, vague, or suspicious.
* **Onboarding method** and **countries of operation**.
## Risk ratings
After you submit the questionnaire, ClearAML calculates one of three ratings:
| Rating | Meaning | Typical review cycle |
| ---------- | --------------------------------------------------------------------- | -------------------- |
| **Low** | Standard risk profile. No material red flags identified. | Every 36 months |
| **Medium** | Elevated risk. One or more risk factors warrant ongoing attention. | Every 24 months |
| **High** | Significant risk indicators present. Enhanced due diligence required. | Every 12 months |
Review cycles are calculated automatically from the assessment date and appear in the **Next Review** column on both the Assessments dashboard and the Clients table.
## Running a risk assessment
Go to **Dashboard → Clients** and click the client whose assessment you want to complete or update.
From the client's summary area, click **Run Risk Assessment** (or the equivalent action in the client details section). The questionnaire opens, pre-filled with any data already on file.
Answer each question. Fields pre-populated from previous assessments or client data can be adjusted if circumstances have changed.
Click **Submit**. ClearAML calculates the risk rating instantly and saves it to the client's profile. A toast notification confirms the rating.
## Escalation
Some combinations of risk factors trigger an automatic escalation flag. When escalation is triggered:
* The assessment is marked with an **Escalation** badge in the Assessments table.
* The client's compliance checklist prompts you to complete Enhanced Due Diligence (EDD).
* An EDD case is created under the client's profile for tracking additional review steps and documentation.
High-risk clients and escalated assessments require Enhanced Due Diligence (EDD) under the AML/CTF Act. Do not onboard or continue to service a high-risk client without completing EDD and documenting your findings.
## Downloading PDF reports
Every completed assessment can be exported as a PDF risk assessment report suitable for your compliance file.
Open the client's profile and select the **Risk Reports** tab.
The tab lists all assessments in reverse chronological order, each showing the risk rating and the date it was completed.
Click **Download PDF** next to the assessment you want to export. The report downloads immediately.
Run a fresh assessment whenever a client's circumstances change — new business activity, change of directors, or a new jurisdiction of operation. ClearAML keeps a full history, so you always have an auditable trail of how the risk rating has changed over time.