According to the Basel Committee's Customer Due Diligence for Banks paper, one of the essential elements of a sound KYC programme is customer identification. This includes obtaining sufficient information to understand the nature and purpose of the customer relationship, the source of funds, and the beneficial ownership and control structure of the customer1. For corporate business entities, this means that a bank needs to have an understanding of the structure of the company, such as its legal form, its ownership, its directors, its line of business, and its geographical locations2. This will help the bank to assess the risk profile of the customer, to verify its identity and legitimacy, and to monitor its transactions for any suspicious activities.
References:
1: Customer due diligence for banks, Basel Committee on Banking Supervision, October 2001, Section III.
2 2: General Guide to Account Opening and Customer Identification, Basel Committee on Banking Supervision, February 2003, Section 2.2.1 Reference: https://www.bis.org/publ/bcbs77.pdf

According to the Basel Committee on Banking Supervision's Customer Due Diligence for Banks, the compliance function should provide an evaluation of a bank's policies and procedures independent from its management. The compliance function is responsible for ensuring that the bank adheres to the relevant laws, regulations, and standards on customer due diligence, anti-money laundering, and combating the financing of terrorism. The compliance function should also monitor the implementation and effectiveness of the bank's customer due diligence policies and procedures, identify and report any breaches or deficiencies, and recommend corrective actions or improvements. The compliance function should have sufficient authority, independence, resources, and access to information to perform its duties effectively.
References:
Customer due diligence for banks, Basel Committee on Banking Supervision, October 2001, paragraphs
55-56
CAMS Study Guide - 6th Edition, Chapter 6, page 172
CAMS Certification Exam Outline, Domain 3, Task 3.1, Skill 3.1.2
Anti-Money-Laundering Guidance: Basel Committee Consultative Paper ..., Office of the Comptroller of the Currency, February 2001, page 2