Which risks are involved in a correspondent banking client's ownership and management structure? (Select Two.)

Question

Options

• ARegularity of board meetings
• BSize of the management structure
• CStatus as a state, publicly, or privately held entity
• DLength of time since the last Wolfsberg Group review
• ETransparency of the ownership structure

• A
  3% (1)
• B
  10% (3)
• C
  83% (25)
• D
  3% (1)

Explanation

When dealing with correspondent banking clients, banks must evaluate the ownership and management structure of the client in order to assess the risks associated with the relationship. The status of the entity as a state, publicly, or privately held entity, as well as the transparency of the ownership structure, are important factors to consider when assessing these risks. Banks should also take into account the size of the management structure, the regularity of board meetings, and the length of time since the last Wolfsberg Group review in order to determine the risk associated with the correspondent banking relationship.

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