Saxo Bank, which specializes in multi-asset investments, has begun implementing a new client risk model aimed at improving its ability to identify and mitigate financial crime risks. The new system, in place since April, will be gradually rolled out over the coming months.

The updated risk framework primarily affects how the company assesses the risk level of its customers based on various factors such as demographics, geographic location, links to politically exposed persons (PEPs) and inclusion on sanctions lists. By assessing these factors, Saxo Bank aims to allocate its resources more efficiently, ensuring compliance with legal and regulatory standards and reducing the risk of financial crime.

For most clients, the new model will result in little or no change in their risk assessments. Moreover, for many clients, risk levels may decrease, resulting in reduced requirements for ongoing due diligence (ODD) and more streamlined automated processing. However, for a smaller fraction of customers, particularly those with high risk levels, the new system may cause increased due diligence procedures or, in rare cases, result in the withdrawal of bank services.

Private clients are prioritizing the rollout of this system, while joint accounts and corporate clients will be introduced later. Asset managers, on the other hand, are not currently required to take any action under this initiative.

Saxo Bank's enhanced due diligence and client risk model are part of the bank's broader commitment to financial security and compliance. The initiative is designed to ensure the bank's compliance with increasingly stringent global regulations aimed at combating money laundering and other forms of financial crime.

Saxo Bank assures customers that those affected will be informed directly and that the changes are aimed at improving the overall efficiency and security of the bank's operations. The company remains committed to protecting its clients' assets and the financial system as a whole from potential threats.

The new model represents a significant step forward in ensuring that Saxo Bank continues to offer a safe and compliant investment environment for its clients around the world.