Which three measures are contained in Financial Action Task Force 40 Recommendations for reporting suspicious activity? (Choose three.)

Question

Options

• AThe activity should be reported promptly to the country's financial intelligence unit.
• BThe financial institution has been contracted by law enforcement regarding the activity.
• CThe financial institution has grounds to believe the activity is related to terrorist financing.
• DThe financial institution has contacted the account holder to determine the activity of the account.
• EThe financial institution has reasonable grounds to suspect the funds are proceeds of criminal

• A
  74% (43)
• B
  17% (10)
• D
  9% (5)

Explanation

If a financial institution suspects or has reasonable grounds to suspect that funds are the proceeds of a criminal activity, or are related to terrorist financing, it should be required, by law, to report promptly its suspicions to the financial intelligence unit (FIU). According to the Financial Action Task Force`s (FATF) Recommendation 20, a suspicious transaction report (STR) or a suspicious activity report (SAR) is filed by a financial institution or, by a concerned citizen, to the local Financial Intelligence Unit if they have reasonable grounds to believe that a transaction is related to criminal activity.

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