Which should a financial institution implement in order to identify and investigate money laundering activity from their clients? (Select Two.)

Question

Options

• AAdverse news screening
• BIntegrity policy
• CWhistleblower hotline
• DCode of conduct
• ETransaction monitoring

• A
  76% (35)
• B
  7% (3)
• C
  15% (7)
• D
  2% (1)

Explanation

The financial institution should implement the following measures in order to identify and investigate money laundering activity from their clients: Adverse news screening: This is a process of checking the clients' names and related parties against various sources of negative or adverse information, such as media reports, sanctions lists, watch lists, law enforcement databases, etc. Adverse news screening can help the financial institution to detect any potential red flags or indicators of money laundering or other criminal activities involving their clients, and to take appropriate actions, such as conducting enhanced due diligence, filing suspicious activity reports, or terminating the relationship. Transaction monitoring: This is a process of reviewing and analyzing the clients' transactions and activities, such as deposits, withdrawals, transfers, payments, etc., to identify any unusual or suspicious patterns or behaviors that deviate from their normal or expected profile. Transaction monitoring can help the financial institution to detect any possible signs of money laundering or other financial crimes, such as structuring, layering, integration, fraud, tax evasion, etc., and to investigate and report them accordingly.

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