Chapter 36: Customer Screening for new business account

Question 1

Mandatory Customer Screening

Answer 1

Banks must legally conduct customer screenings to prevent money laundering and terrorist financing.

Question 2

Passing Customer Screening:

Answer 2

Customers must provide identity and financial information to pass the bank’s screening process.

Question 3

Simplified Customer Screening

Answer 3

Banks can use a simplified screening process for low-risk entities like Dutch government bodies and listed companies.

Question 4

4 stages for customer screening

Answer 4

Identification and Verification (Step 1): Banks must confirm and verify the identity of customers, with different procedures for legal and non-legal entities.

Drawing Up the Customer Profile (Step 2): Banks create a customer profile to understand the purpose of the account and the nature of the relationship.

Establishing the Risk Profile (Step 3): Banks assess the risk profile of the customer and take appropriate risk management measures.

Monitoring the Customer and Transactions (Step 4): Banks have a legal obligation to continuously monitor customers and their transactions even after the account is opened.