ACAMS
CAMS · Question #590
A financial institution's (Fl's) policy is to apply enhanced due diligence (EDD) for every new client to ensure the effectiveness of the program. How should a consultant advise the Fl's management tea
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AML/CFT Compliance Programs
Question
A financial institution's (Fl's) policy is to apply enhanced due diligence (EDD) for every new client to ensure the effectiveness of the program. How should a consultant advise the Fl's management team?
Options
- ASuggest the management team select the clients that are chosen for EDD.
- BSuggest the management team ask the regulator for advice on EDD measures.
- CSuggest EDD for 50% of the clients is appropriate.
- DSuggest the FI needs to implement a risk-based approach for EDD.
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Topics
#enhanced due diligence#risk-based approach#compliance program design#customer risk