CAMS · Question #741
The Basel Committee on Banking Supervision published guidelines on the "Sound Management of Risks Related to Money Laundering and Financing of Terrorism." With regard to identifying and accepting…
The correct answer is A. Establish policies and procedures for customer due diligence that vary based on risk. C. Establish policies and procedures to identify and verify customers, beneficial owners, and any. The Basel Committee's AML guidelines emphasize risk-based customer due diligence (CDD) and beneficial ownership transparency. Option A (Correct): CDD policies must be risk-based to apply enhanced due diligence (EDD) for high-risk customers and simplified due diligence (SDD) for…
Question
The Basel Committee on Banking Supervision published guidelines on the "Sound Management of Risks Related to Money Laundering and Financing of Terrorism." With regard to identifying and accepting customers, it recommends that banks: (Select Two.)
Options
- AEstablish policies and procedures for customer due diligence that vary based on risk.
- BAre prohibited from offering numbered accounts to customers, even if procedures are established
- CEstablish policies and procedures to identify and verify customers, beneficial owners, and any
- DEstablish policies and procedures to ensure due diligence activities are identical for all customers.
- EEstablish policies and procedures that encourage processing transactions while due diligence
How the community answered
(42 responses)- A83% (35)
- B2% (1)
- D10% (4)
- E5% (2)
Explanation
The Basel Committee's AML guidelines emphasize risk-based customer due diligence (CDD) and beneficial ownership transparency. Option A (Correct): CDD policies must be risk-based to apply enhanced due diligence (EDD) for high-risk customers and simplified due diligence (SDD) for low-risk customers. Option C (Correct): Banks must verify the identity of customers and beneficial owners to prevent financial crime risks.
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