ICAEW ARF · Chapter 2 · Question 7 of 8
Before accepting a new audit client, which of the following does the firm have to do under UK anti-money laundering requirements?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Identify the client and verify its identity, including identifying its beneficial owners
Explanation
Customer due diligence requires firms to identify the client and verify its identity on reliable independent evidence, including who ultimately owns or controls it, before establishing the business relationship. Making a report without any suspicion is not required. Credit checks and bank confirmations may be useful but are not anti-money laundering requirements.
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