What is an essential element of Know Your Customer (KYC) standards according to the Basel Committee's Customer Due Diligence for Banks paper?

The correct answer is B. A customer acceptance policy. The correct answer is B, as a customer acceptance policy is an essential element of KYC standards according to the Basel Committee's Customer Due Diligence for Banks paper. A customer acceptance policy defines the types of customers that the bank is willing to accept, and the…

Compliance Standards (International AML/CFT Standards and the role of FATF)

Question

Options

AAnnual staff training
BA customer acceptance policy
CThe same KYC requirements must be applied in all cases
DAll completed KYC documents must be reviewed by a senior manager not involved in the account

How the community answered

(47 responses)

A
4% (2)
B
77% (36)
C
13% (6)
D
6% (3)

Explanation

The correct answer is B, as a customer acceptance policy is an essential element of KYC standards according to the Basel Committee's Customer Due Diligence for Banks paper. A customer acceptance policy defines the types of customers that the bank is willing to accept, and the conditions and limitations that apply to such relationships. A customer acceptance policy helps the bank to avoid customers who are likely to pose a higher than average risk of money laundering or terrorist financing, or who are not willing to provide sufficient information for identification and verification purposes.

Topics

#KYC standards#Basel Committee#customer acceptance policy#CDD

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