Which measures should financial institutions (FIs) take when complying with sanctions requirements?

The correct answer is A. Adopt automatic screening systems to detect designated persons and entities. FIs must have effective sanctions screening processes to prevent transactions involving designated persons or entities. Option A (Correct): Automated screening systems help financial institutions identify sanctioned individuals, entities, and countries in real time.

AML/CFT Compliance Programs

Question

Options

AAdopt automatic screening systems to detect designated persons and entities.
BChange the risk profile to "high-risk" if an existing customer becomes a sanctioned entity and
CConduct enhanced due diligence (EDD) for prohibited entities on the sanctions list.
DFreeze the funds or assets of designated persons and entities once this decision is approved by

How the community answered

(38 responses)

A
71% (27)
B
11% (4)
C
13% (5)
D
5% (2)

Explanation

FIs must have effective sanctions screening processes to prevent transactions involving designated persons or entities. Option A (Correct): Automated screening systems help financial institutions identify sanctioned individuals, entities, and countries in real time.

Topics

#sanctions screening#designated persons#asset freezing#sanctions compliance

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