Assignment Two Question

International Diploma in Anti Money Laundering

Guidance

Please state which region/jurisdiction you are from in the header of each page

Please submit one document only in a Microsoft Word format.

The title of your assignment should be your ID number that begins with a CON or ICTD followed by numbers.

Word count should be between 2,500 and 3,500 words. This includes all footnotes, in text references and appendices but excludes any bibliography, reference or contents page(s). NB Appendices should only be used in exceptional circumstances and should consist of only brief extracts or tables.

Further advice on all aspects of assignment writing and submission is available in the Student

(a) Evaluate the rationale for, and key components of, Customer Due Diligence (ODD) criteria used to determine the risk - rating of prospective clients in a regulated firm operating in a sector of your choice.

(b) You are responsible for the evaluation of new client relationships as part of your job role at a regulated financial firm. An initial evaluation of the documentation on the file of a new client reveals that the client has potential government connections. You are concerned that the individual may be a politically exposed person (PEP).

i. How would determine whether the client is or is not to be classified as a PEP?

ii. If the client is, in your view, to be classified as a PEP, what action should you take before progressing further with the relationship?
iii. If a client is classified as a PEP, what are the consequences from a risk perspective of any on - going relationship with that person?

(c) If a decision has been made by the firm that a client should be exited on account of the level of money laundering risk posed by the client, what risk issues exist in the exiting of the client and what measures should be taken to protect the firm against these risks?