CAMS · Question #155
A suspicious transaction report filed on a car dealer structuring deposits initiates a criminal investigation. The dealer changes branches and begins placing transactions with a frontline employee…
The correct answer is C. Consult with senior management and the legal advisor. It describes the action that the anti-money laundering specialist should take next, which is to consult with senior management and the legal advisor. This is because the specialist needs to seek guidance and approval from the higher authorities and the legal experts on how to…
Question
A suspicious transaction report filed on a car dealer structuring deposits initiates a criminal investigation. The dealer changes branches and begins placing transactions with a frontline employee to whom the dealer has given numerous gifts. This employee handles all of the dealer's structured deposits and does not report the suspicious activity internally. The competent authority has advised the anti-money laundering specialist to avoid tipping off the employee until the investigation is finalized. What action should the specialist take next?
Options
- ARecommend the immediate termination of the employee.
- BAdvise that the dealer's accounts should be closed.
- CConsult with senior management and the legal advisor.
- DInform the institution's regulatory agency of the situation.
How the community answered
(66 responses)- A8% (5)
- B5% (3)
- C73% (48)
- D15% (10)
Explanation
It describes the action that the anti-money laundering specialist should take next, which is to consult with senior management and the legal advisor. This is because the specialist needs to seek guidance and approval from the higher authorities and the legal experts on how to handle the situation without compromising the ongoing criminal investigation or violating the anti-money laundering laws and regulations. The specialist also needs to ensure that the institution's internal policies and procedures are followed and that the appropriate measures are taken to mitigate the risks and protect the reputation of the institution.
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