ACCA Applied Skills · Corporate and Business Law (Global) · Fraudulent and criminal behaviour
Which of the following is a typical requirement placed on a regulated firm such as an accountancy practice under anti-money laundering regulations?
Regulated firms must verify client identity and keep records of the checks as part of customer due diligence. They are not required to freeze accounts by nationality, refuse cash-based clients outright, or disclose transactions to competitors, which would breach confidentiality.
- AVerify the identity of clients and keep records of the checksCorrect
- BFreeze the bank accounts of any client who is a foreign national
- CRefuse work for clients with cash-based businesses
- DReport all transactions above a fixed value to the client's competitors
Explanation
Regulated firms must carry out customer due diligence, including verifying identity, and keep records. They are not required to freeze accounts by nationality, refuse all cash businesses, or disclose to competitors, which would also breach confidentiality.
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