Under the Wolfsberg Correspondent Banking Principles, which action is considered an enhanced due diligence obligation to correspondent banking clients that present greater risks?

The correct answer is C. Approval of a high-risk relationship by a senior management committee. Under the Wolfsberg Correspondent Banking Principles, conducting enhanced due diligence (EDD) is an obligation for correspondent banking clients that present greater risks. This may include conducting additional research and analysis of the client's background, ownership…

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

Question

Options

AConducting reviews on all high-risk relationships
BAn evaluation done by the compliance officer in charge of the account
CApproval of a high-risk relationship by a senior management committee
DOngoing monitoring of clients located in tax haven countries

How the community answered

(34 responses)

A
3% (1)
B
12% (4)
C
82% (28)
D
3% (1)

Explanation

Under the Wolfsberg Correspondent Banking Principles, conducting enhanced due diligence (EDD) is an obligation for correspondent banking clients that present greater risks. This may include conducting additional research and analysis of the client's background, ownership structure, and transactions. EDD may also involve obtaining additional documentation, verifying the client's identity, and conducting periodic reviews to ensure ongoing compliance. The level of EDD required should be commensurate with the level of risk posed by the correspondent banking

Topics

#Wolfsberg Principles#correspondent banking#enhanced due diligence#senior management approval

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