What are two requirements for monitoring and reporting suspicious activity for correspondent banking according to the Wolfsberg Principles? (Choose two.)

Question

Options

• AIncorporate suspicious activity monitoring into periodic reviews
• BIncorporate due diligence results such as customer risk ratings
• CUtilize downstream correspondents to investigate and report suspicious activity
• DInvestigate and report suspicious activity only for the correspondent bank's clients

• A
  70% (14)
• C
  20% (4)
• D
  10% (2)

Explanation

Monitoring and Reporting of Suspicious Activities The institution shall implement bank-wide policies and procedures to detect and investigate unusual or suspicious activity and report any such activity as required by applicable law. These will include guidance on what is considered to be unusual or suspicious and give examples thereof. The policies and procedures shall include appropriate monitoring of the Correspondent Bank's activity, incorporating due diligence results such as customer risk rating and other factors considered meaningful in the assessment of transaction activity risk. In turn, the results of suspicious activity monitoring shall be factored into the periodic review of the client's file, particularly when the results of transaction monitoring indicate elevated risk levels.

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