A suspicious transaction report has been filed on an account owned by the wife of the bank's Chief Executive Officer. Which of the following is the most important consideration when deciding whether…

The correct answer is A. The institution's anti-money laundering policy. The most important consideration when deciding whether to recommend closing the account is the institution's anti-money laundering policy. This is because the policy should provide clear and consistent criteria for account closure decisions, based on the risk assessment, the…

Conducting and Responding to Investigations

Question

A suspicious transaction report has been filed on an account owned by the wife of the bank's Chief Executive Officer. Which of the following is the most important consideration when deciding whether to recommend closing the account?

Options

AThe institution's anti-money laundering policy
BRequests from the competent authority
CCustomer relations
DChief Executive's reputational risk

How the community answered

(55 responses)

A
82% (45)
B
4% (2)
C
9% (5)
D
5% (3)

Explanation

The most important consideration when deciding whether to recommend closing the account is the institution's anti-money laundering policy. This is because the policy should provide clear and consistent criteria for account closure decisions, based on the risk assessment, the nature and severity of the suspicious activity, the customer due diligence information, and the legal and regulatory obligations of the institution. The policy should also ensure that the account closure process is independent, objective, and transparent, and that it does not compromise the confidentiality of the suspicious transaction report or the investigation.

Topics

#STR filing#account closure#compliance independence#senior management

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