3.1.1 Algorithm-Based Assessment Model

The Algorithm-based assessment model calculates the risk scores of customers based on customer attributes. The attributes considered for risk scoring are different for each customer type. Each Attribute is classified as a risk parameter, and each risk parameter is associated with a weight.

The risk score for each parameter is derived using the risk score of the parameter value and the weight of that parameter. The Algorithm-based KYC risk score is derived by summing up all the individually weighted risk scores.