22 Questions
What is the primary objective of Customer Due Diligence?
To identify and verify customers and assess their risks
What is the relation between Customer Due Diligence and the Act on the prevention of money laundering and financing of terrorism?
CDD is a mandatory process for companies that are subject to the Act
Which of the following is NOT a type of institution that is subject to the Act on the prevention of money laundering and financing of terrorism?
Retail stores
What is the outcome of a Customer Due Diligence investigation?
A risk rating for the customer
What is the main focus of Transaction Monitoring?
Monitoring transactions for suspicious activity
What is the purpose of the risk classification in Customer Due Diligence?
To identify high-risk customers
What is the primary goal of the CDD analyst?
To use policies to take a calculated risk
What is the purpose of the Onboarding process in Customer Due Diligence?
To assess integrity risks before providing products and services
What initiates an Event Driven Review?
A signal from Transaction Monitoring
What is the role of the CARC committee?
To make decisions about client departures or measures
What is the purpose of the Client Exit process?
To stop the relationship with the customer
What is the difference between Onboarding and Periodic Review?
Onboarding is a one-time assessment, while Periodic Review is conducted periodically
What type of investigation is conducted when a client's risk rating is high or unacceptable?
Enhanced Due Diligence
What is the purpose of the CDD analyst's investigation?
To assign a risk classification to the client
What is the role of the relationship manager in the Customer Due Diligence process?
To communicate with the client and provide information to the CDD analyst
What are the four different work streams in Customer Due Diligence?
Onboarding, Event Driven Review, Periodic Review, and Exit
What is the primary purpose of a simplified client due diligence investigation?
To reduce costs and administrative burdens for the anti-money laundering obligated institution and the client
In which scenario would a standard investigation be conducted?
When the client operates only in the Netherlands and has no organizational structure to foreign countries
What is the primary difference between a standard investigation and an enhanced due diligence investigation?
The level of risk posed by the client
What is the outcome of an enhanced due diligence investigation?
A better understanding of the risks posed by the client so that the institution can take adequate measures to manage those risks
Which of the following is an example of a client that would require an enhanced due diligence investigation?
An oil storage, transport company that has business operations throughout Europe as well as parts of North Africa and Asia
What is the primary goal of an anti-money laundering obligated institution when conducting a client due diligence investigation?
To identify and verify the client and to perform risk assessment
Learn about the role of a CDD analyst, workflows, and investigation topics in the Know Your Customer process. This course covers the basics of Customer Due Diligence, a crucial component of KYC. Understand the structure and types of investigations, and what to expect in this field.
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