CAMS · Question #593
The regulators of a US financial institution find that the institution has failed to establish and maintain a reasonably designed AML program. Which regulatory actions should be taken? (Select Two.)
The correct answer is B. Deferred prosecution agreement D. Cease and desist order. A deferred prosecution agreement (DPA) is a type of enforcement action that allows a financial institution to avoid criminal prosecution if it admits to wrongdoing, pays a fine, and agrees to remediate its AML program deficiencies within a specified period of time. A cease and…
Question
The regulators of a US financial institution find that the institution has failed to establish and maintain a reasonably designed AML program. Which regulatory actions should be taken? (Select Two.)
Options
- ACriminal penalties
- BDeferred prosecution agreement
- CObtain additional license
- DCease and desist order
- EMatter requiring attention
How the community answered
(41 responses)- A15% (6)
- B76% (31)
- C7% (3)
- E2% (1)
Explanation
A deferred prosecution agreement (DPA) is a type of enforcement action that allows a financial institution to avoid criminal prosecution if it admits to wrongdoing, pays a fine, and agrees to remediate its AML program deficiencies within a specified period of time. A cease and desist order (C&D) is another type of enforcement action that requires a financial institution to stop engaging in unsafe or unsound practices or violations of law, and to take corrective actions to address its AML program weaknesses. Both of these actions are commonly used by regulators to address serious or systemic AML program failures by financial institutions, as evidenced by
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