Financial Risk Manager Part 2
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A regional bank is formalizing its policies and procedures to help identify and analyze the risk of potential money laundering transactions. Of special interest is accounting for customers' backgrounds when determining customer acceptance policies. According to Basel Committee guidelines, which of the following correctly describes a best practice that the bank should use in identifying, verifying and profiling customers to help mitigate money laundering risk?
A
The bank does not need to apply due diligence on a customer if the bank receives funds from that customer's account at another bank that is subject to the same customer due diligence standards.
B
The bank should apply the same due diligence measures to all customers regardless of their jurisdiction and the nature of their relationship with the bank to prevent discrimination.
C
The bank should apply its due diligence process not just to potential customers but also to beneficial owners of the proposed customer accounts and persons acting on their behalf.
D
The bank should not open an account for or conduct business with a customer who wants to remain anonymous to the bank except for confidential "numbered accounts" that function as anonymous.