An employee hears a colleague on the telephone with a customer giving advice on how to ensure that a suspicious transaction report will not be filed as a result of a future transaction. What action…

Question

Options

• AReport the conversation to the local police
• BReport the conversation to the compliance officer
• CTell the colleague that it is against policy to give such advice
• DIgnore the situation because the colleague is the relationship manager for that customer

• A
  4% (1)
• B
  70% (19)
• C
  19% (5)
• D
  7% (2)

Explanation

According to the Anti-Money Laundering Specialist (the 6th edition) resources, the employee should report the conversation to the compliance officer because the colleague is engaging in tipping off, which is a serious violation of anti-money laundering laws and regulations. Tipping off is the act of informing a person or entity that they are the subject of a suspicious transaction report or an investigation, or providing any information that may compromise or impede the investigation. Tipping off can result in criminal penalties, civil liabilities, and disciplinary actions for the individual and the institution. Therefore, the employee has a duty to report the colleague's misconduct to the compliance officer, who is responsible for ensuring compliance with the anti- money laundering policies and procedures, and taking appropriate corrective actions.

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