When implementing a risk-based approach related to casinos, which risks are related to the customer as an individual? (Choose two.)
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A. B. C. D. E.CE
When implementing a risk-based approach related to casinos, two risks that are related to the customer as an individual are:
Customer from a high-risk country (Option D): A customer from a high-risk country poses a potential risk due to factors such as weak anti-money laundering (AML) controls, high levels of corruption, or involvement in illicit activities. The jurisdictional risks associated with the customer's origin can increase the likelihood of money laundering or terrorist financing. Countries that have been identified as high-risk by regulatory bodies or international organizations may have weaker regulatory frameworks, making it easier for individuals to exploit the casino environment for illicit purposes. Therefore, it is important for casinos to identify customers from high-risk countries and implement enhanced due diligence measures to mitigate the associated risks.
Use of casino deposit accounts by the customer (Option E): The use of casino deposit accounts by the customer can also pose risks from an AML perspective. These risks include the potential for customers to deposit illicit funds into their accounts, engage in layering activities to obscure the source of funds, or use the casino as a conduit for money laundering or terrorist financing. Casinos must have robust customer due diligence processes in place to verify the source of funds and identify any suspicious transactions. By monitoring the activities of customers and their use of deposit accounts, casinos can detect and report any suspicious transactions to the relevant authorities, ensuring compliance with AML regulations.
Option A (Transfer between customers) and Option C (Improper use of third parties as customers) are not directly related to the individual customer.
Option B (Casual customers) does not specify any inherent risk related to the customer as an individual. Casual customers could potentially pose risks if they engage in suspicious or large transactions, but the question does not provide enough information to conclude that casual customers are a risk in and of themselves.
Therefore, the two risks related to the customer as an individual are Option D (Customer from a high-risk country) and Option E (Use of casino deposit accounts by the customer).