What process involves assessing a customer's risk?

• A. CDD
• B. High-Risk Areas
• C. Payment Order
• D. Identification Document

Answer: (A)

Assessing a customer's risk is done through Customer Due Diligence (CDD). CDD involves gathering information about who the customer is, their business and ownership structure, expected and actual transactions, sources of funds, and other risk factors, then evaluating these elements to determine the level of risk and the monitoring required. This process guides whether enhanced due diligence or ongoing surveillance is needed. High-Risk Areas refer to parts of the AML program with elevated risk and are not the method used to assess a single customer's risk. A payment order is just a transfer instruction, not a risk assessment. An identification document is used to verify identity, not to evaluate overall risk.