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ACAMS

CAMS · Question #747

An international bank is investigating a payment requested by one of its correspondent relationships that generated an alert in the automated transaction monitoring system. The payment originated…

The correct answer is B. Confirm that neither the beneficiary nor the originator are sanctioned parties. C. Request supporting documents, including invoices and contracts, to confirm the purpose of the D. Check for negative news in public sources on the sender and receiver. Correspondent banking relationships present high money laundering risks, requiring enhanced due diligence (EDD) when monitoring cross-border transactions. Option B (Correct): Verifying that neither the sender nor the receiver is on a sanctions list is a mandatory AML check…

Conducting and Responding to Investigations

Question

An international bank is investigating a payment requested by one of its correspondent relationships that generated an alert in the automated transaction monitoring system. The payment originated from a corporation located in Hong Kong, and the final beneficiary is an individual in New York. Which steps should the bank take first to address the alert? (Select Three.)

Options

  • ACall the receiving individual to review identity verification documents.
  • BConfirm that neither the beneficiary nor the originator are sanctioned parties.
  • CRequest supporting documents, including invoices and contracts, to confirm the purpose of the
  • DCheck for negative news in public sources on the sender and receiver.
  • ESend a 314(b) request to the corporation's bank in Hong Kong.

How the community answered

(46 responses)
  • A
    11% (5)
  • B
    72% (33)
  • E
    17% (8)

Explanation

Correspondent banking relationships present high money laundering risks, requiring enhanced due diligence (EDD) when monitoring cross-border transactions. Option B (Correct): Verifying that neither the sender nor the receiver is on a sanctions list is a mandatory AML check. Option C (Correct): Requesting invoices and contracts helps establish the legitimacy of the transaction and ensures funds are being used for their stated purpose. Option D (Correct): Conducting adverse media checks can reveal past financial crime links or regulatory issues related to the sender or beneficiary.

Topics

#correspondent banking#sanctions screening#transaction monitoring#negative news screening

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