According to FFIEC, what should CDD enable banks to predict?

• A. The exact amount of each transaction
• B. The identity of competitors
• C. The customer's credit score
• D. The types of transactions a customer is likely to engage

Answer: (D)

CDD focuses on understanding a customer's typical behavior so the institution can detect deviations that might signal risk. According to FFIEC guidance, banks should be able to anticipate the kinds of transactions a customer is likely to conduct, based on the customer’s profile and business or personal activity. This enables effective monitoring for abnormal or suspicious activity. Predicting the exact amount of each transaction isn’t feasible or required, and information like competitors’ identities or a customer’s credit score isn’t what CDD aims to predict. The emphasis is on expected transaction types and patterns to support ongoing due diligence and anomaly detection.