CAMS · Question #943
CAMS Question #943: Real Exam Question with Answer & Explanation
The correct answer is B. Enhancement of a customer acceptance policy to more clearly identify high-risk customers D. Enhancement of customer identification procedures to appropriately identify trust, nominee, and. The Basel Committee's CDD principles emphasize improving customer acceptance policies to identify high-risk customers and enhancing identification procedures to cover complex ownership structures such as trusts and nominees.
Question
Options
- AImplementation of a blacklist of correspondent customers with previously detected and
- BEnhancement of a customer acceptance policy to more clearly identify high-risk customers
- CIncreased frequency of training provided to front office employees
- DEnhancement of customer identification procedures to appropriately identify trust, nominee, and
Explanation
The Basel Committee's CDD principles emphasize improving customer acceptance policies to identify high-risk customers and enhancing identification procedures to cover complex ownership structures such as trusts and nominees.
Common mistakes.
- A. The Basel Committee's CDD principles do not advocate for a blacklist-based approach to correspondent customers; instead they promote a risk-based framework for ongoing due diligence, and blacklisting is a separate sanctions or policy control not derived from Basel CDD.
- C. While training is an important component of an AML program, increasing front-office training frequency is not among the key enhancements specifically outlined in the Basel Committee's CDD principles, which focus on structural program components rather than training cadence.
Concept tested. Basel Committee CDD principles for KYC program enhancement
Reference. https://www.bis.org/publ/bcbs85.pdf
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