Based on the AML principles outlined by the Wolfsberg Group, what do private and correspondent banks have in common when monitoring for terrorist financing?

Question

Options

• ANumbered or alternate name accounts will only be accepted if the bank has established the
• BAccount and transactional activity are monitored after the proper identification and verification of
• CCash access from a pre-paid card increases the potential that the card will be used for money
• DTransaction monitoring examines the relationship between due diligence information and account

• A
  8% (5)
• B
  74% (48)
• C
  5% (3)
• D
  14% (9)

Explanation

According to the Wolfsberg Group, a global association of leading banks that develops guidance and standards for the management of financial crime risks, both private and correspondent banks should monitor account and transactional activity after the proper identification and verification of customers, as part of their anti-money laundering and counter-terrorist financing (AML/CTF) measures. This is consistent with the FATF Recommendation 10, which requires financial institutions to conduct ongoing due diligence on their business relationships, including scrutinising transactions to ensure that they are consistent with the customer's risk profile and source of funds. Monitoring account and transactional activity is a key component of the risk-based approach, as it enables banks to detect and report suspicious or unusual transactions, identify changes in customer behaviour or circumstances, and update customer information and risk assessments accordingly.

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