Which practices should financial institutions (FIs) adopt for the process of terminating customer relationships? (Select Three.)

The correct answer is B. Implementing a standardized procedure for customer termination that includes risk assessments C. Performing a final review of a customer's transaction history and records to address any D. Keeping records of the termination process, including the justification for the decision and any. Terminating customer relationships due to AML risks requires clear procedures and Option B (Correct): A standardized termination procedure ensures compliance, fairness, and Option C (Correct): A final review of transactions helps identify suspicious activity before closure…

AML/CFT Compliance Programs

Question

Options

AUtilizing a flexible communication style that adapts to different customer situations during the
BImplementing a standardized procedure for customer termination that includes risk assessments
CPerforming a final review of a customer's transaction history and records to address any
DKeeping records of the termination process, including the justification for the decision and any
ENotifying the customer of the termination decision only after completing the termination process to

How the community answered

(44 responses)

A
7% (3)
B
80% (35)
E
14% (6)

Explanation

Terminating customer relationships due to AML risks requires clear procedures and Option B (Correct): A standardized termination procedure ensures compliance, fairness, and Option C (Correct): A final review of transactions helps identify suspicious activity before closure. Option D (Correct): Documenting termination decisions protects the FI from legal and regulatory

Topics

#customer termination#offboarding procedures#risk assessment#record keeping

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