CAMS · Question #424
The Chief Compliance Officer (CCO) of a financial institution has been asked by a manufacturing customer reliant upon imported raw materials if there will be repercussions to his business following th
The correct answer is A. Delayed processing of cross-border transfer of funds between countries may occur due to. The CCO should advise the manufacturing customer that increased scrutiny of cross-border transfers may lead to delays and caution them to ensure that all necessary documentation is provided in order to facilitate a timely transfer. Additionally, the CCO should recommend that the
Question
The Chief Compliance Officer (CCO) of a financial institution has been asked by a manufacturing customer reliant upon imported raw materials if there will be repercussions to his business following the weak assessment of the recent publicly issued Financial Action Task Force (FATF) Mutual Evaluation Report (MER). How should the CCO respond?
Options
- ADelayed processing of cross-border transfer of funds between countries may occur due to
- BCiting inaccurate content of the MER. the president of the country has called upon the FATF to
- CMandate termination of all cross-border trading until evidence can be provided to show an
- DNegative consequences will not occur because the manufacturing customer has been trading with
How the community answered
(19 responses)- A84% (16)
- C11% (2)
- D5% (1)
Explanation
The CCO should advise the manufacturing customer that increased scrutiny of cross-border transfers may lead to delays and caution them to ensure that all necessary documentation is provided in order to facilitate a timely transfer. Additionally, the CCO should recommend that the customer contact the FATF to discuss the possibility of an independent review of the findings, as well as other options to mitigate the potential negative consequences.
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