CAMS Question #378: Real Exam Question with Answer & Explanation

The correct answer is B. Details on individuals with control over the account. According to the CAMS Study Guide, EDD is a higher level of scrutiny applied to customers who pose a greater risk of money laundering or terrorist financing. EDD may include obtaining additional information on the customer's identity, source of funds, business activities, benefic

Question

Which information should be gathered as part of enhanced due diligence (EDD) for a high-risk customer?

Options

AExplanations for changes in marital status
BDetails on individuals with control over the account
CPlans for traveling in business trips
DPersonal references

Explanation

According to the CAMS Study Guide, EDD is a higher level of scrutiny applied to customers who pose a greater risk of money laundering or terrorist financing. EDD may include obtaining additional information on the customer's identity, source of funds, business activities, beneficial owners, and expected transactions. Details on individuals with control over the account are relevant for EDD, as they may indicate the involvement of politically exposed persons (PEPs), sanctioned individuals, or other high-risk entities. Therefore, this information should be gathered as part of EDD for a high-risk customer.

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