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CAMS · Question #514

CAMS Question #514: Real Exam Question with Answer & Explanation

The correct answer is A. Review the client's activity, determine if suspicious activity exists, and report accordingly. D. Inform local LEA and regulator of the request for awareness.. According to the Certified Anti-Money Laundering Specialist (the 6th edition), the financial institution (Fl) should take the following actions: Review the client's activity, determine if suspicious activity exists, and report accordingly. The Fl should assess the risk of the sit

Question

The law enforcement agency (LEA) of a foreign jurisdiction contacts a financial institution (Fl) regarding one of the Fl's clients. The LEA advises that the client is currently wanted for prosecution as a result of a series of human trafficking charges. What should the Fl do? (Select Two.)

Options

  • AReview the client's activity, determine if suspicious activity exists, and report accordingly.
  • BAdvise the LEA that the government needs to be contacted for extradition.
  • CComply immediately with the foreign jurisdiction and turn over all client information.
  • DInform local LEA and regulator of the request for awareness.
  • EClose the clients accounts immediately to avoid any undue risk.

Explanation

According to the Certified Anti-Money Laundering Specialist (the 6th edition), the financial institution (Fl) should take the following actions: Review the client's activity, determine if suspicious activity exists, and report accordingly. The Fl should assess the risk of the situation and determine if there is any suspicious activity that needs to be reported to the appropriate authorities. This would involve conducting a review of the client's account activity and transactions to determine if there are any indicators of money laundering or terrorist financing. Inform local LEA and regulator of the request for awareness. The Fl should inform the local law enforcement agency and regulator of the request from the foreign jurisdiction to raise awareness of the situation and determine if any further actions need to be taken.

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