According to the 5th EU Money Laundering Directive, member states require entities to apply enhanced customer due diligence measures with respect to business relationships or transactions involving hi

The correct answer is A. Obtaining the approval of senior management for establishing or continuing the business D. Obtaining information on the reasons for intended or performed transactions F. Obtaining information on the source of funds and source of wealth of the customer and of the. these are the enhanced customer due diligence measures that the 5th EU Money Laundering Directive requires for high-risk third country nationals. According to the directive, entities must obtain the approval of senior management for establishing or continuing the business relatio

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

Question

According to the 5th EU Money Laundering Directive, member states require entities to apply enhanced customer due diligence measures with respect to business relationships or transactions involving high-risk third country nationals. Which are included in these requirements? (Choose three.)

Options

AObtaining the approval of senior management for establishing or continuing the business
BObtaining copies of passports for all authorized persons
CEstablishing and verifying the address of the client
DObtaining information on the reasons for intended or performed transactions
EObtaining tax reference details for the client
FObtaining information on the source of funds and source of wealth of the customer and of the

How the community answered

(21 responses)

A
76% (16)
B
5% (1)
C
14% (3)
E
5% (1)

Explanation

these are the enhanced customer due diligence measures that the 5th EU Money Laundering Directive requires for high-risk third country nationals. According to the directive, entities must obtain the approval of senior management for establishing or continuing the business relationship, obtain information on the reasons for intended or performed transactions, and obtain information on the source of funds and source of wealth of the customer and of the beneficial owner(s). These measures are intended to increase the transparency and scrutiny of the customers and their transactions, and to prevent the misuse of the financial system for money laundering or terrorist financing purposes.

Topics

#EU AML Directive#enhanced due diligence#high-risk third countries#source of funds

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