CAMS · Question #664
According to the Basel Committee principles, which actions would make a customer identification program at a bank more robust? (Select Two.)
The correct answer is B. Understanding the nature and purpose behind a new business opening an account at the bank. D. Understanding why a customer has selected a particular financial institution for banking. A robust customer identification program is critical in preventing money laundering and financial Understanding the nature and purpose of a customer's business helps banks assess the legitimacy of financial activity and identify potential risks. Understanding why a customer…
Question
According to the Basel Committee principles, which actions would make a customer identification program at a bank more robust? (Select Two.)
Options
- ALimiting the online activities of a new customer during the first two months.
- BUnderstanding the nature and purpose behind a new business opening an account at the bank.
- CVerifying the identity of a customer with reputable online source documentation.
- DUnderstanding why a customer has selected a particular financial institution for banking.
How the community answered
(36 responses)- A6% (2)
- B81% (29)
- C14% (5)
Explanation
A robust customer identification program is critical in preventing money laundering and financial Understanding the nature and purpose of a customer's business helps banks assess the legitimacy of financial activity and identify potential risks. Understanding why a customer selects a particular bank provides insights into possible risk factors, such as jurisdictional concerns or access to certain financial instruments.
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