Which of the following is NOT a level of Customer Due Diligence?

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Multiple Choice

Which of the following is NOT a level of Customer Due Diligence?

Explanation:
The concept being tested is the set of levels used for Customer Due Diligence under a risk-based approach. In standard AML/CFT practice, the levels are Simplified, Standard, and Enhanced. A level called Prime does not exist in this framework, so it cannot be used as a CDD level. Simplified due diligence is applied when risk is low, allowing lighter verification; Standard is the baseline for typical customers and transactions; Enhanced is used for high-risk situations, requiring more thorough verification and ongoing monitoring. Because Prime isn’t a recognized level, it’s the correct choice for what is NOT a level of CDD.

The concept being tested is the set of levels used for Customer Due Diligence under a risk-based approach. In standard AML/CFT practice, the levels are Simplified, Standard, and Enhanced. A level called Prime does not exist in this framework, so it cannot be used as a CDD level. Simplified due diligence is applied when risk is low, allowing lighter verification; Standard is the baseline for typical customers and transactions; Enhanced is used for high-risk situations, requiring more thorough verification and ongoing monitoring. Because Prime isn’t a recognized level, it’s the correct choice for what is NOT a level of CDD.

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