Which are essential elements of a KYC program identified by the Basel Committee on Banking Supervision? (Select Two.)

The correct answer is B. Customer acceptance policy D. Risk management. According to the Basel Committee on Banking Supervision (BCBS), a sound KYC program should consist of four essential elements: (i) customer acceptance policy; (ii) customer identification; (iii) on-going monitoring of higher risk accounts; and (iv) risk management. Therefore, B a

AML/CFT Compliance Programs

Question

Options

AInternal control
BCustomer acceptance policy
CCode of conduct
DRisk management
ERisk appetite

How the community answered

(26 responses)

A
4% (1)
B
73% (19)
C
15% (4)
E
8% (2)

Explanation

According to the Basel Committee on Banking Supervision (BCBS), a sound KYC program should consist of four essential elements: (i) customer acceptance policy; (ii) customer identification; (iii) on-going monitoring of higher risk accounts; and (iv) risk management. Therefore, B and D are the correct choices among the given options. A customer acceptance policy defines the types of customers that the bank is willing to accept and the conditions for doing so. A risk management system ensures that the bank has adequate policies, procedures, and controls to identify, measure, monitor, and mitigate the risks arising from its KYC program.

Topics

#KYC#Basel Committee#customer acceptance policy#risk management

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