ACAMS
CAMS · Question #338
CAMS Question #338: Real Exam Question with Answer & Explanation
The correct answer is A. Approval of Politically Exposed Persons (PEPs) by at least one person other than the relationship. The bank's internal policies should indicate whether, for any one or more among these categories, Senior Management must approve entering into new relationships. Relationships with Politically Exposed Persons may only be entered into with the approval of Senior Management.
Question
A compliance officer is looking to update an institutions private bank procedures. What should be included as recommended by the Wolfsberg AML Principles on Private Banking?
Options
- AApproval of Politically Exposed Persons (PEPs) by at least one person other than the relationship
- BDedicated automated AML monitoring of client activity
- CReview of client files annually if there are unusual transactions
- DThe institution's senior management has primary responsibility for the relationship
Explanation
The bank's internal policies should indicate whether, for any one or more among these categories, Senior Management must approve entering into new relationships. Relationships with Politically Exposed Persons may only be entered into with the approval of Senior Management.
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