Under the Money Laundering Regulations 2017, what must a firm do before establishing a business relationship with a new client?
Answer and explanation
Correct answer: C. Carry out customer due diligence
- Step 1: The Regulations require risk-based customer due diligence.
- Step 2: Enhanced measures apply to higher-risk clients such as politically exposed persons.
Answer
Carry out customer due diligence.
Why not the others: References are not the test; advance payment is not required; the Law Society does not approve clients.
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