CAMS · Question #507
Which reputations risk consequence could a financial entity face for violating AML laws?
The correct answer is D. Monetary penalties. According to the Certified Anti-Money Laundering Specialist (CAMS) Manual, 6th edition, financial entities that violate Anti-Money Laundering (AML) laws can face several reputational risks such as loss of high-profile customers, seizure of assets, increased audit costs to…
Question
Which reputations risk consequence could a financial entity face for violating AML laws?
Options
- ALoss of high-profile customers
- BSeizure of assets
- CIncreased audit costs to monitor behavior
- DMonetary penalties
How the community answered
(63 responses)- A3% (2)
- B14% (9)
- C8% (5)
- D75% (47)
Explanation
According to the Certified Anti-Money Laundering Specialist (CAMS) Manual, 6th edition, financial entities that violate Anti-Money Laundering (AML) laws can face several reputational risks such as loss of high-profile customers, seizure of assets, increased audit costs to monitor behavior, and monetary penalties. For example, the US Treasury's Financial Crimes Enforcement Network (FinCEN) imposes civil money penalties on "persons who willfully violate, attempt to violate, conspire to violate, or cause any violation of any provision of the Bank Secrecy Act or its implementing regulations."
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