Which statement about ongoing due diligence is true?

• A. It is optional and only for high-risk customers
• B. It is part of the CDD process and applies to the customer base
• C. Not required for high-risk customers
• D. Replaces initial verification

Answer: (B)

Ongoing due diligence focuses on continuously monitoring a customer relationship after onboarding to detect changes in risk or suspicious activity. This process is a steady part of customer due diligence and applies to the entire customer base, not just a subset. It works within a risk-based framework, so the depth and frequency of monitoring vary with how risky the customer is, but it’s expected for all customers over time, rather than being optional or reserved only for high-risk cases. It does not replace initial verification; rather, it complements it by updating information, reviewing transactions, and adjusting risk profiles as needed. In short, ongoing due diligence is an integrated part of the CDD process that applies to everyone in the customer base.