Banking · Customer Due Diligence and Third Party Sourcing
When a bank receives a loan application through an authorized third-party sourcing agent, what is the bank's non-negotiable regulatory obligation regarding appraisal and due diligence on the customer?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The bank must obtain a financial guarantee from the sourcing agent to cover the entire loan amount
- 2The bank must perform direct verification of the customer's income, employment, and residence, as the agent's role is strictly limited to sourcing✓
- 3The bank can fully accept the agent's financial declaration and bypass direct income checks
- 4The bank must pay the agent a premium commission to cover due diligence liabilities
Correct answer
The bank must perform direct verification of the customer's income, employment, and residence, as the agent's role is strictly limited to sourcing
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