CAMS · Question #748
Which practices are crucial for ensuring that an organization effectively limits the collection and use of personal data when performing AML-related controls?
The correct answer is B. Implementing data minimization strategies to collect only the personal data necessary for C. Regularly reviewing and updating data processing policies to ensure they align with industry. AML compliance must be balanced with data protection laws such as GDPR (EU), CCPA (U.S.), and local banking secrecy laws. Option B (Correct): Data minimization ensures financial institutions only collect and retain essential customer data needed for AML compliance. Option C…
Question
Which practices are crucial for ensuring that an organization effectively limits the collection and use of personal data when performing AML-related controls?
Options
- AAllowing unrestricted access to customer data across departments to facilitate quick decision-
- BImplementing data minimization strategies to collect only the personal data necessary for
- CRegularly reviewing and updating data processing policies to ensure they align with industry
- DAllowing repurposing of collected data to avoid redundant processes.
How the community answered
(33 responses)- A9% (3)
- B73% (24)
- D18% (6)
Explanation
AML compliance must be balanced with data protection laws such as GDPR (EU), CCPA (U.S.), and local banking secrecy laws. Option B (Correct): Data minimization ensures financial institutions only collect and retain essential customer data needed for AML compliance. Option C (Correct): Regularly updating data processing policies ensures compliance with evolving data protection regulations.
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