In Managed Services, which process includes CIP/CDD Verification and Watch List Alerts?

• A. Customer Due Diligence
• B. Enhanced Due Diligence
• C. Transaction Monitoring
• D. Policies and Procedures

Answer: (A)

The key idea is establishing who the customer is and how risky they are by verifying their identity and screening against sanctions and other watch lists. CIP (Customer Identification Program) is the process you use to verify a customer’s identity, and CDD (Customer Due Diligence) expands that work to understand the customer’s profile, ownership, sources of funds, and overall risk. Including watch list alerts fits here because screening customers against sanctions, PEPs, and other lists is a fundamental part of ongoing due diligence. Enhanced Due Diligence would come into play only for higher-risk situations, involving deeper investigation beyond standard checks, whereas transaction monitoring focuses on spotting suspicious activity in a customer’s transactions rather than verifying identity or screening lists. Policies and Procedures establish the controls around these activities, but they are not the process of verifying identity and screening.