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CAMS · Question #225

A compliance officer at a large financial institution has been tasked by senior management to lead a team in an internal review and potential revision of the institution's customer onboarding…

The correct answer is A. Reviewing the institution's risk assessment. Review of any AML/CFT program begins with the Risk Based Approached. It should first check the internal system to identify risk factors and design program accordingly.

AML/CFT Compliance Programs

Question

A compliance officer at a large financial institution has been tasked by senior management to lead a team in an internal review and potential revision of the institution's customer onboarding program following a regulatory enforcement action of another institution. Which step should the compliance officer perform first?

Options

  • AReviewing the institution's risk assessment
  • BRevising training materials for frontline staff
  • CConducting enhanced due diligence on high risk customers
  • DResolving substantive discrepancies in customer verification

How the community answered

(27 responses)
  • A
    78% (21)
  • B
    4% (1)
  • C
    4% (1)
  • D
    15% (4)

Explanation

Review of any AML/CFT program begins with the Risk Based Approached. It should first check the internal system to identify risk factors and design program accordingly.

Topics

#customer onboarding#risk assessment#compliance program#regulatory enforcement

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