7 Questions
What are the two types of approaches that can be applied in Customer Due Diligence investigations?
Rule Based Approach and Risk Based Approach
Which approach focuses more on specific rules, regulations, and guidelines when conducting checks on customers?
Rule Based Approach
What does the rule-based approach in Know Your Customer emphasize?
Compliance with regulations and laws
What does the risk-based approach entail for a financial institution?
Adjusting procedures based on the risk level associated with a specific customer
How does the risk-based approach suggest institutions should focus their resources?
On customers who pose the greatest risk
What is a key difference between the rule-based approach and the risk-based approach?
Use of professional judgement in arriving at decisions
In the rule-based approach, what is emphasized when conducting checks on customers?
Compliance with regulations
Learn about the ID&V process involved in compliance checks for individuals and companies. Understand the importance of verifying identity through a selfie and the different methods to complete the process.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
