According to the Basel Committee's principles on customer due diligence, a bank should:

The correct answer is C. obtain the information to establish the identity of a customer, beneficial owners, and any person. According to the Basel Committee's principles on customer due diligence, banks must obtain the necessary information to establish the identity of their customers, beneficial owners, and any persons acting on behalf of their customers. This includes verifying the identity of the…

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

Question

Options

Amaintain systems to detect suspicious transactions based on a customer's velocity and volume
Brefuse to conduct ongoing business with a customer who fails to provide proper identification
Cobtain the information to establish the identity of a customer, beneficial owners, and any person
Dfile a suspicious activity report when there is reason to believe the bank is being used for criminal

How the community answered

(34 responses)

A
9% (3)
B
3% (1)
C
85% (29)
D
3% (1)

Explanation

According to the Basel Committee's principles on customer due diligence, banks must obtain the necessary information to establish the identity of their customers, beneficial owners, and any persons acting on behalf of their customers. This includes verifying the identity of the customer and the beneficial owners and assessing the customer's risk profile. Additionally, banks must conduct ongoing due diligence to ensure that the customer does not give rise to suspicions of money laundering or terrorist financing.

Topics

#Basel Committee#customer due diligence#identity verification#beneficial ownership

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