CAMS · Question #679
Which changes at a financial institution (FI) should trigger an enterprise-wide reassessment of its inherent AML risk exposure? (Select Three.)
The correct answer is A. Introduction of new products or services. D. Use of new technologies for delivering existing products. E. Mergers or acquisitions. AML risk assessments must be updated when there are significant changes in business Option A (Correct): New products (e.g., cryptocurrency services, trade finance) introduce new Option D (Correct): Technology changes (e.g., AI in transaction monitoring, new digital banking…
Question
Which changes at a financial institution (FI) should trigger an enterprise-wide reassessment of its inherent AML risk exposure? (Select Three.)
Options
- AIntroduction of new products or services.
- BRestructuring of the FI's risk and compliance functions.
- CChanges in the individuals overseeing the FI's product lines and sales strategies.
- DUse of new technologies for delivering existing products.
- EMergers or acquisitions.
How the community answered
(23 responses)- A78% (18)
- B13% (3)
- C9% (2)
Explanation
AML risk assessments must be updated when there are significant changes in business Option A (Correct): New products (e.g., cryptocurrency services, trade finance) introduce new Option D (Correct): Technology changes (e.g., AI in transaction monitoring, new digital banking platforms) impact fraud and AML controls. Option E (Correct): Mergers or acquisitions introduce new customer bases, jurisdictions, and compliance frameworks, requiring risk reevaluation.
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