Which piece of information identified by customer screening would be the most likely reason to trigger consideration of exiting a business relationship with a customer because of financial crime…

The correct answer is B. The customer is linked to an organized crime group. Financial institutions must screen customers against adverse information and determine whether they pose a significant financial crime risk. A direct link to an organized crime group is a severe red flag. Organized crime networks engage in money laundering, corruption, and…

AML/CFT Compliance Programs

Question

Which piece of information identified by customer screening would be the most likely reason to trigger consideration of exiting a business relationship with a customer because of financial crime concerns?

Options

AThe customer is a shareholder of a corporation declared bankrupt.
BThe customer is linked to an organized crime group.
CThe customer is a politically exposed person (PEP).
DThe customer allegedly violated a construction permit limit.

How the community answered

(31 responses)

A
3% (1)
B
81% (25)
C
3% (1)
D
13% (4)

Explanation

Financial institutions must screen customers against adverse information and determine whether they pose a significant financial crime risk. A direct link to an organized crime group is a severe red flag. Organized crime networks engage in money laundering, corruption, and other illicit activities. Under FATF Recommendations 10 and 12, financial institutions must implement enhanced due diligence (EDD) for high-risk customers and consider account closure if they pose undue risk.

Topics

#customer screening#organized crime#business relationship exit#financial crime risk

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