Scale smarter, not harder, with Cascade’s automated risk framework

Regulators expect your KYC process to reflect real-world risk. That means no more one-size-fits-all onboarding.
Cascade helps you design and deploy fully automated, risk-based KYC workflows that adapt to client type, jurisdiction, and complexity with zero coding required.

What is a risk-based KYC workflow?

A risk-based KYC workflow tailors customer due diligence (CDD) based on the inherent risk posed by the client.
It allows you to apply the right level of scrutiny while staying compliant with the following:

FATF’s risk-based approach (RBA)
UK MLR 2017 and FCA guidelines
EU AMLD 5/6 requirements
CSSF circulars for financial entities

Why does it matter?

Streamlines low-risk onboarding – no more overkill for straightforward clients
Flags high-risk clients for EDD – faster triage and escalation
Reduces operational burden – team focuses where it matters
Delivers better audit results – clear, documented rationale for every risk decision

How to build a risk-based KYC workflow (with Cascade)

1. Define risk scoring criteria

Start by identifying the variables that drive risk at your firm:

Jurisdiction (onshore, offshore, high-risk countries)
Client type (individual, corporate, trust)
Industry (regulated, cash-intensive, crypto, etc.)
PEP status, UBO complexity, or investment volume

With Cascade: Easily configure a risk matrix using dropdowns; no developer needed.

2. Create tiered onboarding paths

Low-risk clients get streamlined checks. High-risk clients trigger full EDD.

With Cascade:
Assign onboarding journeys by risk level, each with its own documents, screening logic, and approval paths.

3. Automate risk-based triggers

Build rules that adapt in real time. Example: If jurisdiction = Cayman + corporate structure = layered, escalate to Level 3 EDD.

With Cascade:
Triggers route tasks automatically to MLROs, reviewers, or managers based on your risk policy.

4. Link ongoing monitoring to risk

Don’t just assess risk once. Risk levels should guide:

Review frequency (e.g. annually vs. quarterly)
Screening depth
Alert sensitivity

With Cascade:
Monitoring workflows are driven by client risk and updated when new data is captured.

5. Track, document, and audit everything

Regulators want to know, “Why did you treat this client this way?”

With Cascade:
Every risk score, workflow step, and document is logged with timestamps and audit trails, export-ready.

Who needs risk-based KYC?

This is essential for:

Fund managers handling multiple client types
Wealth and asset managers balancing volume with risk
CSPs with both local and offshore clientele
Fintechs onboarding at speed
Law firms navigating PEP/UBO complexity
AIFMs and ManCos dealing with regulated LPs and GPs

Why Cascade?

No-code workflow builder – fully configurable by compliance teams
Unlimited workflows – build by fund, client type, jurisdiction, or risk level
Integrated scoring engine – live risk data tied to screening and documents
Always audit-ready – regulators love our traceability
Fast setup – go live in weeks, not months

Frequently asked questions

_{Do we need developers to build workflows in Cascade?}

No. Cascade is a no-code platform. Compliance teams can build and update workflows themselves with full control.

_{Can we use different workflows for different jurisdictions?}

Yes. You can build unlimited onboarding and review flows based on region, fund, risk score, or entity type.

_{Does Cascade track changes in risk levels?}

Yes. When risk scores change due to screening hits, document expiry, or ownership updates, Cascade alerts your team and can escalate tasks.

_{Is Cascade compliant with UK and EU risk-based AML expectations?}

Absolutely. Cascade is designed around the FATF RBA model and fully aligned with UK MLR 2017 and EU AMLDs.

Disclaimer: This article is based on publicly available information and market understanding at the time of writing. While we aim to provide accurate and useful information, some details may change over time or be incomplete. Readers should carry out their own assessment before making any business decision.