An example of an external factor that will affect an organization's AML risk is:

Question

Options

• Aacceptance of new customer types.
• Bpolitical system changes in a specific jurisdiction.
• Cintroduction of a new product which will be offered to a wide range of clients.
• Dintroduction of mobile banking for all clients.

• A
  7% (3)
• B
  72% (31)
• C
  16% (7)
• D
  5% (2)

Explanation

Political system changes can have an impact on an organization's AML risk as they can affect the legal and regulatory framework in which the organization operates. For example, changes to the laws or regulations related to AML, or changes in the way in which the government enforces AML regulations, can have an impact on the organization's AML risk by increasing or decreasing the likelihood of it being exposed to AML risk. In addition, changes in the political environment or political stability in a specific jurisdiction can also affect the organization's AML risk.

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