Once a financial institution has reported suspicious transactions on a valued customer, it should cooperate with competent authorities by

Question

Options

• AMaintaining adequate written documentation of all individuals and transactions reported.
• BHinting to the customer that she should come in and explain her behavior.
• CSubmitting information upon receiving a legal request from parties involved in a civil law-suit.
• DProviding the supporting documentation to competent authorities upon request.

• A
  8% (2)
• B
  13% (3)
• C
  75% (18)
• D
  4% (1)

Explanation

Structuring transactions is a common method of money laundering, where cash deposits or withdrawals are broken down into smaller amounts to avoid reporting or record-keeping requirements. Employees who unintentionally assist customers in structuring transactions may not be aware of the legal and regulatory implications of their actions, or may have been misled or coerced by the customers. Therefore, the most appropriate and proportionate response is to provide remedial training to these employees, to ensure they understand the anti-money laundering policies and procedures, the red flags of suspicious activity, and their reporting obligations. Terminating, contacting law enforcement, or transferring these employees may be excessive, premature, or ineffective measures, depending on the circumstances and the level of involvement of the employees.

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