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What are the two types of approaches that can be applied in Customer Due Diligence investigations?
What are the two types of approaches that can be applied in Customer Due Diligence investigations?
- Guideline Based Approach and Risk Based Approach
- Rule Based Approach and Risk Based Approach (correct)
- Policy Based Approach and Regulation Based Approach
- Principle Based Approach and Customer Based Approach
Which approach focuses more on specific rules, regulations, and guidelines when conducting checks on customers?
Which approach focuses more on specific rules, regulations, and guidelines when conducting checks on customers?
- Rule Based Approach (correct)
- Policy-Based Approach
- Risk Based Approach
- Guideline-Based Approach
What does the rule-based approach in Know Your Customer emphasize?
What does the rule-based approach in Know Your Customer emphasize?
- Monitoring customer activities
- Compliance with regulations and laws (correct)
- Setting customer risk levels
- Understanding the customer and risks associated with the customer relationship
What does the risk-based approach entail for a financial institution?
What does the risk-based approach entail for a financial institution?
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How does the risk-based approach suggest institutions should focus their resources?
How does the risk-based approach suggest institutions should focus their resources?
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What is a key difference between the rule-based approach and the risk-based approach?
What is a key difference between the rule-based approach and the risk-based approach?
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In the rule-based approach, what is emphasized when conducting checks on customers?
In the rule-based approach, what is emphasized when conducting checks on customers?
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