Free Acams CKYCA Actual Exam Questions - Question 5 Discussion
Maybe D could also fit here since identifying the purpose and nature of the business relationship is about understanding the customer better, which is a key part of enhanced due diligence. While C focuses on wealth source, D helps clarify why they’re engaging with your business, which is crucial for high-risk cases too. The others (A and B) sound more like ongoing verification or threshold monitoring, not really deep dives. So D seems like a reasonable example of EDD as it goes beyond basic info gathering.
Option C makes the most sense since EDD involves digging deeper on high-risk customers, like checking where their wealth comes from. The other choices (A, B, D) are more basic KYC or ongoing monitoring steps, not really enhanced due diligence. So if the question is about EDD specifically, C fits best.
Probably C here, since EDD usually means digging deeper on wealth sources for suspicious or high-risk clients. The others seem more like routine checks or monitoring steps.
A/C? A seems about ongoing ID checks which can be EDD, while C is more about deeper info. Since EDD means extra steps after initial checks, both fit different parts of it. B and D feel more basic.
Maybe A works too since verifying identity after starting the relationship fits enhanced due diligence’s ongoing checks, not just initial ID. It feels more like extra scrutiny than basic verification.
Makes sense to rule out A and B since verifying ID and transaction monitoring are standard, not enhanced. C fits better as EDD digs into wealth origins. So, I’d go with C.
It’s C because EDD is all about extra checks like finding out where the customer’s money comes from, which is more detailed than just verifying identity or monitoring transactions.
C. Knowing the source of wealth fits EDD because it's about digging deeper for high-risk clients, not just basic checks or ongoing monitoring. It goes beyond usual due diligence steps.
I'm pretty sure it's C since EDD focuses on deeper info like source of wealth.