Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

What is one of the primary responsibilities in Customer Due Diligence for Banks?

1. Managing all customer complaints

2. Conducting ongoing training for all staff

3. Reviewing customer files and conducting random sampling

4. Providing insurance against fraud for clients

The correct answer is: Reviewing customer files and conducting random sampling

One of the primary responsibilities in Customer Due Diligence (CDD) for banks is to review customer files and conduct random sampling. This process is critical because it allows banks to verify the information provided by customers and assess their risk profiles accurately. By reviewing customer files, banks ensure that the customer data is complete, current, and properly documented. Conducting random sampling helps institutions identify any discrepancies or potential issues that may not be apparent in a comprehensive review. It acts as a check to confirm that the CDD processes are effective and that customers are being categorized accurately based on their risk levels. This ongoing assessment is essential for complying with anti-money laundering (AML) regulations and protecting the institution from being exploited for illicit activities. The other options, while important in their own right, do not directly relate to the specific duties involved in verifying and assessing customer information as part of CDD. Managing customer complaints, conducting staff training, and providing fraud insurance do not play a direct role in the CDD process that aims to prevent money laundering and ensure compliance with regulatory requirements.