Which of the following is a key component of AML compliance programs?

Effective customer due diligence measures are a key component of AML compliance programs as they involve the processes and procedures that institutions must implement to accurately identify, assess, and understand their customers. This includes verifying customer identities, understanding the nature of their activities, and assessing the risk they may pose in terms of money laundering or terrorist financing.

By conducting thorough customer due diligence, institutions can better identify and monitor suspicious activities, ensuring that they are able to fulfill their regulatory obligations and mitigate potential risks. This process also contributes to the overall integrity of the financial system by helping to prevent the misuse of financial services for illegal activities.

The other options do not encapsulate the direct responsibilities and necessary steps involved in AML compliance. High-risk onboarding processes alone do not cover the comprehensive approach required; public awareness campaigns, while valuable for informing the public, do not serve as direct measures within an AML framework; and strong client relationships, if not accompanied by rigorous checks, could lead to compliance gaps and increased risks.