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Questions and Answers
What is one of the risks that a bank faces when dealing with a prospective customer?
What is one of the risks that a bank faces when dealing with a prospective customer?
- The prospective customer may be a foreign national
- The prospective customer may be a minor
- The prospective customer may have assumed a false name (correct)
- The prospective customer may be involved in money laundering
What measure is recommended in the text to verify a prospective customer's identity?
What measure is recommended in the text to verify a prospective customer's identity?
- Requesting a DNA sample
- Requesting a background check from a private investigator
- Requesting a fingerprint scan
- Requesting proof of identification bearing a photograph (correct)
In the case of Ladbroke v Todd (1914), what was the bank found negligent for?
In the case of Ladbroke v Todd (1914), what was the bank found negligent for?
- Failing to make inquiries or ask for references about the prospective customer (correct)
- Failing to conduct a credit check on the customer
- Failing to verify the customer's employment status
- Failing to report the suspicious transaction to the authorities
In the case of Guardians of St John's Hampstead v Barclays Bank Limited (1923), what mistake did the bank make?
In the case of Guardians of St John's Hampstead v Barclays Bank Limited (1923), what mistake did the bank make?
Based on the cases mentioned in the text, what can be inferred about the duty of banks regarding customer identification?
Based on the cases mentioned in the text, what can be inferred about the duty of banks regarding customer identification?
What is the purpose of verifying a prospective customer's previous banking relationship, as mentioned in the text?
What is the purpose of verifying a prospective customer's previous banking relationship, as mentioned in the text?
Why is it important for proof of identification to bear a photograph?
Why is it important for proof of identification to bear a photograph?
In the case of Guardians of St John's Hampstead v Barclays Bank Limited (1923), what did the rogue customer do?
In the case of Guardians of St John's Hampstead v Barclays Bank Limited (1923), what did the rogue customer do?
Based on the information provided in the text, which of the following statements is true regarding a bank's duty of care?
Based on the information provided in the text, which of the following statements is true regarding a bank's duty of care?
What is one potential risk that a bank faces if it fails to properly verify a prospective customer's identity?
What is one potential risk that a bank faces if it fails to properly verify a prospective customer's identity?
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