A financial institution (FI) has decided to revamp its compliance program to be more risk-based. Which option should the FI use as part of the new risk-based compliance program?

The correct answer is D. Data-based. A risk-based compliance program is one that identifies and prioritizes the highest compliance risks to the FI and implements controls, policies and procedures to mitigate them. A data-based option is the most suitable for a risk-based compliance program, as it allows the FI to co

AML/CFT Compliance Programs

Question

Options

ALeadership-based
BPredictive-based
CTransaction-based
DData-based

How the community answered

(47 responses)

A
4% (2)
B
17% (8)
C
9% (4)
D
70% (33)

Explanation

A risk-based compliance program is one that identifies and prioritizes the highest compliance risks to the FI and implements controls, policies and procedures to mitigate them. A data-based option is the most suitable for a risk-based compliance program, as it allows the FI to collect, analyze and monitor relevant data on its customers, transactions, products, services, geographies and other risk factors. A data-based option also enables the FI to measure the effectiveness of its compliance program and adjust it as needed to respond to changing risks and regulatory expectations.

Topics

#risk-based approach#compliance program design#data analytics#AML controls

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