Which of the following scenarios best justifies why a customer's account might be closed by a financial institution?

The correct answer is A. The account has transactions that triggered multiple suspicious activity reports (SARs). Accounts may be closed if they pose high money laundering or sanction risks. Option A (Correct): Multiple SAR filings indicate high risk, possibly requiring account closure if AML concerns persist.

AML/CFT Compliance Programs

Question

Options

AThe account has transactions that triggered multiple suspicious activity reports (SARs).
BThe account shows periodic fixed amount remittances for tuition fees.
CThe customer uses a shipping company dealing with specially designated nationals (SDNs).
DThe customer is the object of a civil subpoena.

How the community answered

(30 responses)

A
80% (24)
B
13% (4)
C
3% (1)
D
3% (1)

Explanation

Accounts may be closed if they pose high money laundering or sanction risks. Option A (Correct): Multiple SAR filings indicate high risk, possibly requiring account closure if AML concerns persist.

Topics

#account closure#SAR#de-risking#customer risk

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