An anti-money laundering specialist has been hired by an independently-owned community bank to implement an anti-money laundering compliance program. This bank has recently seen a dramatic increase…

Question

Options

• Afile a suspicious transaction report on international customers receiving large electronic fund
• Bconduct a risk assessment of the bank's international electronic fund transfer activity.
• Cdevelop a new account questionnaire to quantify the level of risk for new international accounts.
• Dclose all accounts which have had a dramatic increase in international electronic fund transfer

• A
  3% (1)
• B
  86% (30)
• C
  9% (3)
• D
  3% (1)

Explanation

The first thing the anti-money laundering specialist should do is to conduct a risk assessment of the bank's international electronic fund transfer activity. This is to identify and measure the potential money laundering and terrorist financing risks associated with the bank's products, services, customers, and geographic locations. A risk assessment can help the anti-money laundering specialist to: Understand the nature and extent of the bank's exposure to money laundering and terrorist financing threats and vulnerabilities. Establish a risk-based approach to the design and implementation of the anti-money laundering compliance program, including policies, procedures, controls, monitoring, reporting, and training. Allocate appropriate resources and prioritize actions to mitigate the identified risks and enhance the effectiveness of the anti-money laundering compliance program. Demonstrate to the regulators and auditors that the bank has a sound and comprehensive anti-money laundering compliance program that is commensurate with its risk profile and business activities.

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