A customer of a bank is an established art dealer. Within the KYC due diligence processes, which constitutes a triggering event that requires ongoing due diligence on this client?

Question

Options

• AThe customer specializes in art sale and hire, and recently started an art selection consulting
• BThe customer keeps adding artwork service providers to the payment beneficiary list.
• CThe customer moves their headquarters from New Zealand to China and opens a branch in
• DThe owner wants to exchange foreign currency for an overseas business travel.

• A
  5% (2)
• B
  13% (5)
• C
  79% (31)
• D
  3% (1)

Explanation

The customer's relocation and expansion to different jurisdictions constitutes a triggering event that requires ongoing due diligence on this client, as it may indicate changes in the customer's risk profile, business activities, or beneficial ownership. The bank should update the customer's information, verify the identity and legitimacy of the new entities, and assess the level of money laundering and sanctions risks associated with the new locations. The other options are not triggering events, as they are either consistent with the customer's normal business operations or do not affect the customer's risk profile.

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