17 Questions
What is the main focus of Customer Due Diligence (CDD)?
Identifying and verifying the customer
Which institutions are subject to the Act on the prevention of money laundering and financing of terrorism?
Banks and law firms
What is the purpose of conducting a CDD investigation?
To identify and verify customers for risk assessment
What differentiates Customer Due Diligence (CDD) from Transaction Monitoring?
CDD aims to identify and verify customers, while Transaction Monitoring tracks financial transactions
What type of organizations are required to comply with the Act on the prevention of money laundering and financing of terrorism?
Financial institutions and some companies
How does Customer Due Diligence (CDD) help organizations understand their risks?
By providing a risk rating for all customers and taking necessary actions
What is the primary goal of a Customer Due Diligence analyst according to the text?
To prevent money laundering and financing of terrorism
What are the four different work streams in Customer Due Diligence for researching a customer?
Onboarding, Event Driven Review, Periodic Review, and Exit
What triggers an Event Driven Review according to the text?
Unusual transactions
What is the purpose of Periodic Review in Customer Due Diligence?
To re-investigate clients in a frequent period based on risk rating
What happens in the process of Customer Exit in Customer Due Diligence?
Processes are put in place to end relationships with high-risk clients
Which type of due diligence would likely be conducted for a local computer store operating only in the Netherlands?
Simplified Due Diligence
What is the primary purpose of an Enhanced Due Diligence investigation?
To fully understand the risks posed by the client to manage them adequately
Which type of due diligence would likely be conducted for a municipality or province in the Netherlands?
Simplified Due Diligence
What is the main difference between a Standard Due Diligence and an Enhanced Due Diligence investigation?
An Enhanced Due Diligence is more extensive and involves additional measures to understand the customer and identify the origin and destination of money flows
Which type of business would likely require an Enhanced Due Diligence investigation?
An oil storage and transport company operating throughout Europe and parts of North Africa and Asia
What is the primary goal of a simplified investigation?
To minimize costs and administrative burdens
Explore the main work stream of Customer Due Diligence (CDD) in the Know Your Customer field. Learn about the roles and responsibilities of a CDD analyst, investigation workflows, types of investigations, and the structure of investigations topics.
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