Upon filing a suspicious transaction report, which of th following elements should be the highest anti-money laundering priority in making the decision to keep the account open?

The correct answer is B. Procedures to ascertain the potential risk to the organization. The decision to keep or close an account after filing a suspicious transaction report (STR) should be based on a risk-based approach that considers the nature and severity of the suspicious activity, the customer profile and relationship, the regulatory and legal obligations…

Conducting and Responding to Investigations

Question

Options

AFinancial impact on the institution if the account is closed.
BProcedures to ascertain the potential risk to the organization.
CAdditional Administrative costs of monitoring the account.
DTotal number of accounts the institution closed in the last month.

How the community answered

(32 responses)

A
6% (2)
B
81% (26)
C
3% (1)
D
9% (3)

Explanation

The decision to keep or close an account after filing a suspicious transaction report (STR) should be based on a risk-based approach that considers the nature and severity of the suspicious activity, the customer profile and relationship, the regulatory and legal obligations, and the reputational and operational risks for the institution. The financial impact, the administrative costs, and the number of accounts closed are not the primary factors in determining the appropriate course of action.

Topics

#suspicious transaction report#account risk assessment#STR filing#account management

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