Reference data screening is a core element of AML/CFT programs and typically covers:
* Customers (B):"All customers must be screened against sanctions, PEP, and adverse media lists as part of onboarding and ongoing due diligence."(CAMS 6th Edition, Due Diligence and Screening)
* Third-party service providers (C):"Screening should extend to relevant third parties, such as agents and service providers, to prevent indirect exposure to sanctioned entities."(CAMS 6th Edition, Third-Party Screening; FATF Recommendations) Incorrect Options:
* A: Types of payment messages are not screened; the entities/individuals are.
* D: Customer spouses may be screened in some KYC processes but are not a standard dataset for reference screening.
References:
CAMS 6th Edition, Due Diligence and Screening
FATF Recommendations 10, 13, and 16

A primary objective of public sector groups in combating money laundering is to establish and enforce legal and regulatory frameworks that enable the detection, prevention, and punishment of money laundering and related financial crimes, ensuring the integrity of the financial system.

Verifying a customer's identity is a fundamental CDD requirement under the FATF Recommendations, ensuring you know who your customer is.
Identifying the beneficial owner is required to uncover the natural persons ultimately controlling or benefiting from an account, closing the gap that would allow misuse of corporate vehicles.

The documentation should include evidence that the residual risk remains within the bank's risk appetite, analysis of resources spent and costs associated with the current lower threshold, and historical data showing the high false positive rate to justify altering the threshold while maintaining effective risk management.