Which step should financial institutions take when complying with sanctions requirements?

Question

Options

• AAdopt automatic screening systems to detect designated persons and entities.
• BConduct enhanced due diligence for prohibited entities on the sanctions list.
• CChange the risk profile to "high-risk" if an existing customer becomes a sanctioned entity and
• DFreeze the funds or assets of designated persons and entities once this decision is approved by

• A
  3% (2)
• B
  16% (10)
• C
  8% (5)
• D
  73% (45)

Explanation

The financial institution should freeze the funds or assets of designated persons and entities once this decision is approved by the Board. This is to comply with the obligation to implement targeted financial sanctions imposed by the United Nations Security Council (UNSC) or other relevant authorities. Freezing means preventing any access, use, transfer, or disposal of the funds or assets by the designated persons and entities or by any other person on their behalf. The financial institution should also report the freezing action to the competent authority and the relevant sanctions committee.

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