Customer Due Diligence for the prevention and detection of money laundering and terrorist financing includes which of the following?

• A. (i) identifying and verifying a customer's identity.
• B. (ii) obtaining information on the purpose and intended nature of the business relationship with a customer.
• C. (iii) monitoring the ongoing relationship with the customer.
• D. i, ii and iii.

Answer: (D)

Customer Due Diligence involves establishing who the customer is, clarifying why they are engaging with the institution, and continuously monitoring the relationship to spot any changes in risk. Identifying and verifying identity is the first essential step to know the person or entity you’re dealing with and to ensure you’re not onboarding someone illicit. Understanding the purpose and intended nature of the business relationship helps you assess why the customer is there, what services or products they’ll use, and whether their expected activity fits the risk profile. Ongoing monitoring keeps you alert to new information or transactions that could signal unusual or suspicious activity, so you can adjust due diligence or escalate as needed. When you combine these three elements, you have a complete standard CDD process designed to prevent and detect money laundering and terrorist financing.