Financial Action Task Force (FATF)

FATF Recommendation 1 focuses on the primary measure financial institutions must take to prevent financial crime, known as:

MCQ

MCQ Answer

A. Mandatory asset seizure.

B. Customer Due Diligence (CDD) / Know Your Customer (KYC). Correct

Explanation

KYC is foundational, requiring institutions to verify the identity of their customers and understand the nature of their business.

C. Zero-tolerance for cash transactions.

D. Mandatory reporting of all bank accounts.

Correct Answer

Customer Due Diligence (CDD) / Know Your Customer (KYC).

Practice More Financial Action Task Force (FATF) MCQs Discuss Report