A bank's transaction surveillance system triggers an alert for a deposit of 250.000 USO into a client's account. According to the bank's KYC information, the client works for a financial advisory firm, and earns approximately 100,000 USD per year. Which actions should be taken? (Select Three.) File the suspicious transaction immediately to the financial intelligence unit.
Correct Answer: B,C,E
According to the Certified Anti-Money Laundering Specialist (CAMS) Manual , 6th edition, if a bank's transaction surveillance system triggers an alert for a deposit of 250.000 USD into a client's account, the bank should take the following actions: Request information and documentation from the client on the background of the transaction (CAMS Manual, 6th edition, page 46). Contact the client advisor to learn if he has any insight on the transaction background (CAMS Manual, 6th edition, page 47). Review the transaction background in the bank's transaction platform (CAMS Manual, 6th edition, page 47). Discarding the alert as a false positive hit and reviewing the alert if the deposit is made in cash should not be done. The bank should request additional information and documentation from the client to better understand the nature of the transaction. Additionally, the bank should reach out to the client advisor to learn if they have any insight on the transaction background. Finally, the bank should review the transaction background in the bank's transaction platform to determine if any additional alerts or anomalies are present. (CAMS Manual, 6th Edition, Pages 117-118)
Question 132
What does designing a country as being of "prime money laundering concern" allow the U.S. government to do?
Correct Answer: B
Question 133
An example of an external factor that will affect an organization's AML risk is:
Correct Answer: B
Political system changes can have an impact on an organization's AML risk as they can affect the legal and regulatory framework in which the organization operates. For example, changes to the laws or regulations related to AML, or changes in the way in which the government enforces AML regulations, can have an impact on the organization's AML risk by increasing or decreasing the likelihood of it being exposed to AML risk. In addition, changes in the political environment or political stability in a specific jurisdiction can also affect the organization's AML risk.
Question 134
Which factor should a financial institution (FI) consider prior to sharing customer records within the same jurisdiction?
Correct Answer: C
Question 135
Financial institutions (FIs) perform AML risk assessments to ensure:
Correct Answer: D
AML risk assessments are a key component of the risk-based approach to AML compliance, as required by the MLR 20171 and the FATF Recommendations2. AML risk assessments help FIs to identify, assess, and mitigate the money laundering and terrorist financing risks they face, taking into account their specific products, services, customers, and geographic locations. AML risk assessments also help FIs to allocate their resources and implement their AML policies and procedures in a proportionate and effective manner. AML risk assessments are not meant to be a one-off exercise, but rather an ongoing process that should be updated regularly to reflect changes in the FI's risk profile and the external environment. References: 1: The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 2: The FATF Recommendations - International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation Reference: https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/faqs/17.%20Wolfsberg-Risk-Assessment-FAQ
