Podcast
Questions and Answers
What is another term used to refer to the Principle Based Approach in Customer Due Diligence investigations?
What is another term used to refer to the Principle Based Approach in Customer Due Diligence investigations?
- Rule Based Approach (correct)
- Regulation Focused Approach
- Risk Based Approach
- Customer Relationship Approach
Which of the following best describes the focus of the rule-based approach in Know Your Customer processes?
Which of the following best describes the focus of the rule-based approach in Know Your Customer processes?
- Emphasizes compliance with regulations and laws (correct)
- Focuses on understanding the customer and their risks
- Relies solely on manual verification processes
- Prioritizes speed over accuracy in verification
Why might the rule-based approach in Customer Due Diligence investigations provide a limited view of the customer?
Why might the rule-based approach in Customer Due Diligence investigations provide a limited view of the customer?
- It relies on manual verification processes
- It uses advanced machine learning algorithms for verification
- It focuses on understanding customer risks
- It emphasizes compliance with regulations over customer understanding (correct)
What aspect does the risk-based approach in Customer Due Diligence investigations primarily focus on?
What aspect does the risk-based approach in Customer Due Diligence investigations primarily focus on?
How does the rule-based approach differ from the risk-based approach in Customer Due Diligence investigations?
How does the rule-based approach differ from the risk-based approach in Customer Due Diligence investigations?
In Customer Due Diligence investigations, what does the Risk Appetite refer to?
In Customer Due Diligence investigations, what does the Risk Appetite refer to?
What is the primary driver for determining the frequency of customer re-evaluation in a risk-based approach?
What is the primary driver for determining the frequency of customer re-evaluation in a risk-based approach?
What is the purpose of a risk-based approach in managing customer relationships?
What is the purpose of a risk-based approach in managing customer relationships?
What is the difference between the risk-based approach and the rule-based approach?
What is the difference between the risk-based approach and the rule-based approach?
What is the primary reason for initiating the offboarding process with a customer?
What is the primary reason for initiating the offboarding process with a customer?
What is the purpose of an 'Event Driven Review' in customer re-evaluation?
What is the purpose of an 'Event Driven Review' in customer re-evaluation?
What is the consequence of mistakenly classifying a customer with a genuinely neutral risk as medium?
What is the consequence of mistakenly classifying a customer with a genuinely neutral risk as medium?
What is the role of senior management in a risk-based approach?
What is the role of senior management in a risk-based approach?
What is the primary difference between a customer with a neutral risk and a customer with a medium risk?
What is the primary difference between a customer with a neutral risk and a customer with a medium risk?
What is the purpose of Customer Due Diligence (CDD) investigations in a risk-based approach?
What is the purpose of Customer Due Diligence (CDD) investigations in a risk-based approach?
What is the primary challenge for banks in completely severing a relationship with a customer?
What is the primary challenge for banks in completely severing a relationship with a customer?
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