What kind of person should perform the independent testing of an institution's anti-money laundering program?

Question

Options

• AA certified specialist in the anti-money laundering field
• BA former anti-money laundering officer from a similar institution
• CA person who reports directly to the Board of Directors or a Board Committee
• DA retired government regulator or federal law enforcement officer

• A
  14% (3)
• B
  5% (1)
• C
  77% (17)
• D
  5% (1)

Explanation

According to the Anti-Money Laundering Specialist (the 6th edition) by ACAMS, the independent testing of an institution's anti-money laundering program should be conducted by a person who reports directly to the Board of Directors or a Board Committee. This ensures that the person conducting the testing has the necessary authority, independence, and objectivity to evaluate the program's adequacy and effectiveness, and to report any findings or recommendations to the senior management. The person conducting the testing should also have the appropriate knowledge, skills, and experience in the anti-money laundering field, and should be familiar with the institution's products, services, customers, and risks.

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