The assignment should contain :
1- Introduction
2- body
3- conclusion the word count should be between 2500 and 3500 words
Question: a- Evaluate the rational for , and key components of customer Due Diligence ( CDD) criteria used to determine the risk- rating of prospective clients in regulated firm operating in a banking sector Why do we need KYC/CDD what are the international best practice/ regulatory guideline (FATF, ACAMS) CDD criteria to use for classify risk
b- you are responsible for the evaluation of new client relationship as part of your job role at a regulated financial firm.
An initial evaluation of the documentation on the file of anew client reveals that the client has potential government connections. you are concerned that the individual may be a politically exposed Peron (PEP)
- how would determine whether the client is or is not to be classified as a PEP? from the KYC (know your customer ) while opening an acc , screen his name, monitor the accounts, identify the source - if the client is, in your view, to be classified as a PEP, what a action should you take before progressing further with the relationship?
Apply EDD ( enhance Duo Diligence) , take approval from management while open an acc - if the client classified as a PEP, what are the consequences from a risk perspective of any on- going relationship with that Peron?
will be high ris, close monitor , ongoing EDD , RM ( relationship manger) should be close monitor to his acc , should keep system and contoll , keep such those customer in one list so to be easy for monitoring,
c- if the decision has been made by the firm that a client should be exited on account of the level of money laundering risk posed by the client, what risk issues in the exiting of the client and what measures should be taken to protect the firm against these risk ?
type of risks ( Financial , Reputation and legal ) risks
Financial risk : on the bank their will not be high financial revenue will be loss
Reputation risk : cooperate customer will leave the bank and they are net worth customer, new customer will not open ac acc with us
legal risk: they will suite the bank and will be courts to mitigate the risks:
Financial risk : Increase EDD, CDD, KYC Reputation risk: will go to public to inform their will be plane to review all the KYC
legal risk: if we close the relationship we should take legal advice , if they have any liability , we should check the contract and review anew contracts