Which private banking situation requires due diligence actions to be implemented according to the AML principles of the Wolfsberg group?

Question

Options

• AA local wealthy individual wants to become a customer of a local retail bank.
• BA beneficial owner of an exchange house wants to open an account with the bank.
• CA wealthy individual from a high-risk country wants to open an account with a private bank.
• DA new customer asks to set up an exchange house using the bank as the correspondent.

• A
  6% (2)
• B
  6% (2)
• C
  74% (25)
• D
  15% (5)

Explanation

this situation requires enhanced due diligence actions according to the AML principles of the Wolfsberg group. The Wolfsberg group is an association of 13 global banks that aims to develop standards and best practices for AML and CFT in the private banking sector. The group has issued a set of principles and guidance on how to conduct due diligence on private banking customers, especially those who pose higher risks, such as politically exposed persons (PEPs), customers from high-risk countries, and customers with complex or opaque structures. According to the Wolfsberg group, private banks should apply a risk-based approach to customer due diligence and perform enhanced measures for high-risk customers, such as obtaining senior management approval, verifying the identity and source of wealth of the customer and the beneficial owner, understanding the purpose and nature of the relationship, and conducting ongoing monitoring and review.

No community discussion yet for this question.