Risk assessment clarification

As part of your customer due diligence procedure, the AML Act requires you to obtain information about the purpose and intended nature of the business relationship.

This investigation is intended to reveal why a customer wants to enter a business relationship with you and whether the business relationship has a legitimate purpose.

To understand the purpose and nature of the business relationship, you might need to gather information about your client’s business model, income, and assets, as well as the anticipated level, frequency, and nature of transactions that are going to be performed by your firm for the client during the business relationship.