Which step should financial institutions take when complying with sanctions requirements?

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

• A
  72% (39)
• B
  7% (4)
• C
  15% (8)
• D
  6% (3)

Explanation

Sanctions compliance is mandatory for financial institutions (FIs) to prevent transactions with sanctioned individuals, entities, and countries. Option A (Correct): Automatic sanctions screening is essential for detecting and blocking transactions involving sanctioned individuals or entities.

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