The Financial Action Task Force recommends the incorporation of some measures in customer due diligence programs including:

Question

Options

• Aidentifying the number of beneficial owners without the verification of their true identity.
• Bconducting the risk assessment of products and services.
• Cconducting ongoing due diligence on the business relationship and monitoring of transactions.
• Didentifying the products and services and their suitability to customers.

• A
  5% (3)
• B
  7% (4)
• C
  72% (42)
• D
  16% (9)

Explanation

Ongoing Due Diligence: FATF emphasizes the importance of continuous monitoring of business relationships and transactions. This involves regularly assessing the risk associated with a customer and ensuring that the information remains up-to-date. It includes monitoring transactions for any suspicious activity or red flags. Beneficial Owners: Identifying beneficial owners is crucial, but it must be done with verification of their true identity. This is part of the initial due diligence process. Risk Assessment: Conducting risk assessments is essential, but it is not specific to customer due diligence. Risk assessment applies broadly to anti-money laundering (AML) programs. Products and Services Suitability: While understanding the suitability of products and services is relevant, it is not a direct measure within customer due diligence.

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