Podcast
Questions and Answers
Which customers require Enhanced Due Diligence (EDD)?
Which customers require Enhanced Due Diligence (EDD)?
Who approves the establishment of business with high-risk customers?
Who approves the establishment of business with high-risk customers?
What is the criteria for considering customers as high-risk?
What is the criteria for considering customers as high-risk?
What is the purpose of the Company verifying the identity of the beneficial owner?
What is the purpose of the Company verifying the identity of the beneficial owner?
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What documents, data or sources of information should the Company use to verify the identity of the beneficial owner?
What documents, data or sources of information should the Company use to verify the identity of the beneficial owner?
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How should the Company verify the identity of legal persons or legal arrangements?
How should the Company verify the identity of legal persons or legal arrangements?
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What information should the Company obtain to understand the nature of the customer's business and its ownership and control structure?
What information should the Company obtain to understand the nature of the customer's business and its ownership and control structure?
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Study Notes
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
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Description
Test your knowledge on high-risk customers and Enhanced Due Diligence (EDD) with this quiz. Learn about the criteria used by companies to identify high-risk customers and the importance of conducting enhanced due diligence before establishing business relationships.
