Which of the following are key AML measures that a regulated asset management company in the European Union (EU) should implement? (Select Two.)

The correct answer is A. Performing negative news checks of prospective customers. D. Understanding the source and origin of assets. Asset management companies handle large amounts of funds, making them prime targets for money launderers. Option A (Correct): Negative news (adverse media) screening is essential for identifying potential financial crime risks. Option D (Correct): Understanding the source and…

AML/CFT Compliance Programs

Question

Options

APerforming negative news checks of prospective customers.
BRejecting any politically exposed persons (PEPs) as customers.
CInviting prospective customers for an onboarding interview.
DUnderstanding the source and origin of assets.
EProducing financial stability reports on interesting customers.

How the community answered

(43 responses)

A
84% (36)
B
5% (2)
C
9% (4)
E
2% (1)

Explanation

Asset management companies handle large amounts of funds, making them prime targets for money launderers. Option A (Correct): Negative news (adverse media) screening is essential for identifying potential financial crime risks. Option D (Correct): Understanding the source and origin of assets ensures that funds come from legitimate sources.

Topics

#asset management#EU AML directives#source of funds#negative news screening

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