Your institution's procedures for conducting ongoing customer due diligence must include:
A. Identifying large currency transactions.
B. Identifying transactions subject to economic sanctions.
C. Obtaining and analyzing sufficient customer information to understand the nature and purpose of the customer relationship.
D. Obtaining and maintaining appropriate records of funds transfers.
Answer (2)
The primary focus of ongoing customer due diligence is obtaining and analyzing sufficient customer information to understand the nature and purpose of the customer relationship. Other aspects, such as identifying large currency transactions and maintaining records, are important but secondary in the context of CDD. Understanding customers helps in effective risk assessment and compliance. ;
The core focus of ongoing customer due diligence (CDD) is obtaining and analyzing sufficient customer information to understand the nature and purpose of the customer relationship. Other important elements include identifying large currency transactions, economic sanctions, and maintaining records, but these are secondary to understanding the customers themselves. Therefore, option C is the most critical aspect of CDD.
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