Outgoing foreign transactions of similar amounts trigger a monitoring alert for a customer's accounts. During the evaluation of the accounts, the bank discovers the wire transfers were very small…

Question

Options

• Aaccount holder presents proof the funds are legal.
• Bbeneficiaries of transfers are not on a terrorist watch list.
• Cbeneficiaries of transfers are not included on the Transparency International List.
• Daccount holder does not reside in a country included on the U.S. State Department State

• A
  4% (2)
• B
  78% (39)
• C
  12% (6)
• D
  6% (3)

Explanation

This is the correct answer because the institution must ensure that the beneficiaries of the transfers are not on a terrorist watch list, such as the United Nations Security Council Consolidated List, the U.S. Treasury Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Persons List, or the European Union Terrorism List. These lists contain the names of individuals, entities, and groups that are subject to sanctions or other measures due to their involvement or association with terrorism or terrorist financing. The institution must screen the beneficiaries of the transfers against these lists and report any matches or hits to the relevant authorities. Failing to do so may expose the institution to legal, regulatory, or reputational risks, as well as facilitate the financing of terrorism.

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