When onboarding a corporate customer, financial institutions mustconduct due diligence to assess potential AML risks.
Option A (Correct):Understanding thenature of the businesshelps identifyhigher-risk industries(e.g.,casinos, cryptocurrency exchanges, cash-intensive businesses).
Option D (Correct):Identifyingsenior managing officials and account signatorieshelps verify thetrue control and ownership of the company.
Option E (Correct):Jurisdictional risk assessmentis key, especially if the company is from aFATF-listed high-risk country.
Why Other Options Are Incorrect:
Option B (Incorrect):Theemployment profiles of all employeesarenot relevantunless they have adirect role in financial transactions.
Option C (Incorrect):A company'sbanking history is not always relevant, unless there arered flags of prior financial crime involvement.
Best Practices for Corporate Customer Onboarding:
Verify beneficial ownership structuresto detect potential shell companies.
Conduct enhanced due diligence (EDD) for high-risk industries and jurisdictions.
Ensure ongoing monitoring of corporate customers.
[Reference:, FATF Recommendation 10 (Customer Due Diligence), 6th EU AML Directive (6AMLD) on Corporate Due Diligence, Wolfsberg Group Guidance on Corporate Customer AML Risk Management, , , , ]
