Which measure sets caps on how much a customer can load, the value of transactions, and where those transactions can take place?

Which measure sets caps on how much a customer can load, the value of transactions, and where those transactions can take place?

• A. Customer Due Diligence
• B. Limit loading, value and geographical limits
• C. Source of funding
• D. Record-keeping, transaction monitoring and reporting

Answer: (B)

Controls that set activity caps create thresholds for what a customer can load, the value of their transactions, and where those transactions can occur. By imposing loading limits, transaction value limits, and geographic restrictions, an institution can quickly spot and flag activity that exceeds expected levels or falls outside permitted areas, helping to prevent money movement that could be illegal or high risk. This kind of cap-based measure directly governs the scope of customer activity, unlike Customer Due Diligence, which focuses on who the customer is and their risk profile; source of funding checks where funds come from; or record-keeping, monitoring, and reporting, which concentrate on documentation and detection rather than pre-set limits.

Controls that set activity caps create thresholds for what a customer can load, the value of their transactions, and where those transactions can occur. By imposing loading limits, transaction value limits, and geographic restrictions, an institution can quickly spot and flag activity that exceeds expected levels or falls outside permitted areas, helping to prevent money movement that could be illegal or high risk. This kind of cap-based measure directly governs the scope of customer activity, unlike Customer Due Diligence, which focuses on who the customer is and their risk profile; source of funding checks where funds come from; or record-keeping, monitoring, and reporting, which concentrate on documentation and detection rather than pre-set limits.