If a client refuses to provide an address other than a PO Box, what should John do?

If a client refuses to provide an address other than a PO Box, what should John do?

• A. Refuse to open the account
• B. Open the account with the PO Box
• C. Refuse to open the account but note the PO Box
• D. Open after requesting an alternative address

Answer: (C)

In AML, you must verify a client’s physical address as part of customer due diligence. A PO Box by itself does not provide a verifiable residence or location, and it limits your ability to confirm identity, assess risk, and contact the client if needed. When a client refuses to supply a physical address, you can’t complete the required KYC steps, so you should not open the account. The proper course is to refuse to open the account but note the PO Box on the record, documenting that only a PO Box was provided. This creates an clear audit trail and signals elevated risk while you still attempt to obtain a verifiable address. Opening the account with just a PO Box or after continuing to press for an alternative address would bypass essential verification and expose the firm to regulatory risk.

In AML, you must verify a client’s physical address as part of customer due diligence. A PO Box by itself does not provide a verifiable residence or location, and it limits your ability to confirm identity, assess risk, and contact the client if needed. When a client refuses to supply a physical address, you can’t complete the required KYC steps, so you should not open the account. The proper course is to refuse to open the account but note the PO Box on the record, documenting that only a PO Box was provided. This creates an clear audit trail and signals elevated risk while you still attempt to obtain a verifiable address. Opening the account with just a PO Box or after continuing to press for an alternative address would bypass essential verification and expose the firm to regulatory risk.