Which statement about a multinational institution's ability to fully investigate unusual activity in all its foreign operations is correct?

Question

Options

• ALocal privacy and data protection laws may prevent an affiliate from sharing information.
• BCertain account documents may be stored only in local language which will prohibit a global
• CThe institution should consult with the customer and request permission to conduct a full
• DEnterprise-wide compliance oversight rules issued in the global institution's headquarters country

• A
  81% (17)
• B
  5% (1)
• C
  5% (1)
• D
  10% (2)

Explanation

A multinational institution may face challenges in conducting a full investigation of unusual activity across its foreign operations, due to the different legal and regulatory frameworks that apply in each jurisdiction. One of the main obstacles is the local privacy and data protection laws that may restrict the access, transfer, or disclosure of customer information, especially personal or sensitive data, to other entities within the same group or to external parties, such as law enforcement or regulators. Therefore, the institution should be aware of the local laws and regulations that govern the collection, processing, and sharing of customer data, and ensure compliance with them.

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