Banking · KYC and AML
Ms. Fatima opens a current account for her new startup. Initially, the bank performs a physical verification of her home-office to substitute a missing second business proof document. Later, the account starts receiving high-value international wire transfers from Dubai and Singapore. The bank's AML system flags these transactions because the profile was domestic. The Compliance Officer asks Ms. Fatima to provide copies of the service contracts and subsequently updates her risk profile from 'Low' to 'Medium'. Which of the following actions by the bank was a direct application of the 'Risk-Based Approach'?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Capturing photos of her workstation during the initial verification visit.
- 2Asking for service contracts and upgrading the risk profile due to subsequent international transactions.✓
- 3Performing a physical verification of the home-office to substitute a second document.
- 4Requiring standard government identity cards for personal identification.
Correct answer
Asking for service contracts and upgrading the risk profile due to subsequent international transactions.
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