Which risk factors should a financial institution (FI) examine for a new corporate customer intending to open a bank account? (Select Three.)

Question

Options

• AThe type of business the corporate customer is engaged in.
• BThe employment profiles and information of all employees of the new customer.
• CAll the financial institutions where the new customer currently banks or banked previously.
• DThe identity of senior managing officials and all individuals authorized to operate the account.
• EThe country or location where the customer is from or conducts business.

• A
  73% (32)
• B
  20% (9)
• C
  7% (3)

Explanation

When onboarding new corporate customers, financial institutions must conduct thorough due diligence (KYC/CDD) to assess the risk profile of the business. Option A (Correct): Knowing the customer's business activity is critical to identifying if it is a high- risk industry (e.g., cash-intensive businesses, virtual assets, shell companies). Option D (Correct): Identifying senior management and account operators ensures that the rightful owners and controllers are known. Option E (Correct): Jurisdictional risk is a key factor. If the company operates in a high-risk country, enhanced due diligence (EDD) may be required.

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