What actions reflect KYC and AML onboarding in a bank?

• A. Verify identity, assess risk, monitor activity, escalate for suspicious transactions, and apply risk-based controls
• B. Approve accounts based on name similarity
• C. Do not collect identity information
• D. Only check credit score

Answer: (A)

KYC and AML onboarding means establishing who the customer is and consistently managing the risk they may pose. The best answer captures the full process: verify identity to confirm who you’re dealing with, assess risk based on factors like geography, business type, and source of funds, continuously monitor activity for signs of unusual or suspicious behavior, escalate or report when something looks suspicious, and apply risk-based controls accordingly. This combination addresses both the upfront verification and the ongoing vigilance required by regulators. The other options fall short: approving accounts based on name similarity can be easily fooled; not collecting identity information leaves you blind to who the customer is; and checking only a credit score misses identity verification, ongoing monitoring, and proper AML controls.