A businessman requests a European private bank to open a numbered or alternate name account. According to the Basel Committee on Banking Supervision principles, which of the following is the most…

Question

Options

• AWho will control the account?
• BWho will inherit the proceeds in the event of the businessman's death?
• CHow much money will be deposited into the account?
• DWhat account-opening date should I record'!'

• A
  79% (26)
• B
  3% (1)
• C
  6% (2)
• D
  12% (4)

Explanation

According to the Basel Committee on Banking Supervision principles, the most important question the banker should ask when opening a numbered or alternate name account is who will control the account. This is because such accounts pose a higher risk of money laundering and terrorist financing, as they can be used to conceal the identity and beneficial ownership of the funds. Therefore, the banker should perform enhanced due diligence and verify the identity and source of funds of the person who has the authority to operate the account, as well as the purpose and nature of the business relationship. The other questions are less relevant or secondary to the issue of control. The inheritance of the proceeds in the event of the businessman's death is a matter of succession law and does not affect the identification of the beneficial owner. The amount of money deposited into the account may indicate the level of risk, but does not reveal the origin or destination of the funds. The account- opening date is a procedural detail that does not affect the compliance with the anti- money laundering and counter-terrorist financing standards.

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