High-Risk Customers and EDD Quiz

High-Risk Customers and Enhanced Due Diligence (EDD)

• Certain customers require Enhanced Due Diligence (EDD), including those with higher risk of money laundering or terrorist financing.

Approving High-Risk Customer Establishment

• The establishment of business with high-risk customers must be approved by senior management.

Criteria for High-Risk Customers

• Customers are considered high-risk if they are:
• Politically Exposed Persons (PEPs)
• From high-risk countries or territories
• Involved in high-risk businesses or industries
• Have a high-risk business relationship or transaction

Verifying Beneficial Owner Identity

• The purpose of verifying the identity of the beneficial owner is to identify and assess the risk of money laundering or terrorist financing.

Sources for Verifying Beneficial Owner Identity

• The Company should use reliable and independent documents, data, or sources of information to verify the identity of the beneficial owner, such as:
• Government-issued identification documents
• Public records
• Independent verification services

Verifying Legal Persons or Legal Arrangements

• The Company should verify the identity of legal persons or legal arrangements by:
• Obtaining documents and information on the legal structure and ownership
• Conducting searches and checks on public records and databases
• Reviewing documentation and information provided by the customer

Understanding Customer Business and Structure

• The Company should obtain information to understand the nature of the customer's business and its ownership and control structure, including:
• Business activities and operations
• Ownership and control structure
• Source of funds and wealth
• Business relationships and transactions