Inherent risk assessment
Evaluate ML/TF and PF risk exposure separately across eight key risk categories, with recommended weighting for each category.
From complexity to clarity
SARA: your automated risk assessment solution
Automating money laundering/terrorism financing/ proliferation financing risk assessment
Developing a comprehensive understanding of your money laundering (ML), terrorism financing (TF) or proliferation financing (PF) risk exposures and establishing effective mitigation strategies has become a regulatory imperative for Luxembourg’s investment fund professionals.
Traditional methods for annual ML/TF/PF risk assessment are often complex, rigid, and difficult to maintain as regulatory requirements evolve faster than processes can adapt and therefore present significant limitations in today’s complex regulatory environment, such as:
Risk exposure such as formula errors, multiple copies or versions leading to confusion and potential completeness gaps, lack of validation, subjective decisions with limited guidance; inconsistency across assessments.
Operational inefficiency with the same questions answered differently across assessments, weeks of manual work, time spent on formatting rather than analysis. Each assessment feels like starting from scratch.
Regulatory vulnerability such as outdated approaches or insufficiently robust methodology, weak audit trail due to the use of spreadsheets and fragmented systems.
What if ML/TF/PF risk assessment could be automated, traceable, and manageable?
From complexity to clarity with SARA
SARA (Solution for Annual Risk Assessment) is a user‑friendly software service solution designed specifically for Luxembourg investment fund managers, CSSF‑regulated funds, and AED‑supervised alternative investment funds.
It compiles investment fund industry‑wide risk indicators aligned with the latest AML/CFT regulations and market practices, helping you stay ahead of regulatory expectations.
SARA guides you through a structured, three-level assessment process:
Inherent risk assessment across the most relevant risk categories, using both quantitative and qualitative information.
Control framework evaluation to assess the effectiveness of your mitigating measures across ten control groups covering all the professional obligations applicable to the entity.
Residual risk scoring presented in an interactive dashboard to highlight priorities and provide a clear risk overview.
How SARA addresses your main ML/TF/PF compliance challenges
SARA combines qualitative and quantitative assessment in an easy-to-use interface to deliver precise risk assessments, justify residual risk scoring, and ensure alignment with your organisation’s risk appetite. SARA does more than collect information; it supports informed decision‑making.
Methodology and risk catalogues evolve in line with regulatory changes and industry best practices. When regulations and expectations change, SARA is updated accordingly to enable you to stay effortlessly compliant.
Automate your annual risk assessment, reduce manual tasks, and maintain a full audit trail. A process that used to take weeks now takes a single day with improved accuracy and documentation and one-click replication of finalised risk assessments.
Monitor progress, track assessment status, and generate detailed reports instantly, facilitating reporting and Board approval. You always know exactly where you stand—no more last‑minute pressure before deadlines.
Your complete risk assessment workflow
Who benefits from SARA?
Investment Fund Managers (IFMs), CSSF-regulated funds, AED-supervised AIFs, compliance officers (responsable du contrôle, RC) and money laundering reporting officers (MLRO)
Why investment fund professionals choose SARA
- Fast implementation
- Ready-to-use templates and guidelines
- Separate ML/TF and PF risk assessment
- One-click reporting
- Complete audit trail
- Suitable for all types of funds, as well as IFM
- Developed by Arendt Regulatory & Consulting AML/CFT experts familiar with Luxembourg regulations and industry best practices.
Stop struggling with compliance. Embrace automation
Luxembourg’s investment fund professionals are facing mounting pressure to manage financial crime risks effectively. Non-automated tools make the challenge harder.
SARA transforms the annual ML/TF/PF risk assessment from a burdensome obligation into a structured, efficient, and value‑adding process.
Ready to see SARA in action?
Download the full guide to learn how Arendt can help you streamline compliance, save time, and strengthen your risk management strategy.
Contact our AML/CFT experts with Arendt Regulatory & Consulting and request a demo to see how SARA can revolutionise your risk assessment process.
Contact our experts
Sandrine Périot
Partner ARC
Abhishek Dawar
Director
Philippe Matelic
Director
Markos-Marios Bikas
Director