Which elements are included in Customer Due Diligence for money laundering and terrorist financing?

• A. (i) identity verification.
• B. (ii) information on the purpose and intended nature of the business relationship.
• C. (iii) monitoring the ongoing relationship.
• D. All of the above.

Answer: (D)

In money laundering and terrorist financing controls, customer due diligence includes three key elements: verifying the customer’s identity, understanding the purpose and intended nature of the business relationship, and continuously monitoring the relationship. Verifying identity establishes who the customer is and helps prevent impersonation and illicit activity. Knowing the purpose and nature of the relationship allows you to assess whether expected transactions align with the customer’s profile and to set an appropriate level of scrutiny. Ongoing monitoring keeps the relationship under review over time, flagging any unusual or inconsistent activity and ensuring information stays up to date. Because all three components are essential parts of CDD, the best answer is that all of the above are included.