CAMS · Question #762
Privacy and data protection restrictions placed upon financial institutions (FIs) in the EU require that FIs must: (Select Two.)
The correct answer is B. Apply data minimization to avoid overreach in data collection. D. Follow strict guidelines when using machine learning and artificial intelligence. Financial institutions operating in the EU must comply with GDPR and AML directives, ensuring a balance between privacy and AML compliance. Option B (Correct): Data minimization is a key GDPR principle, ensuring that only necessary data is collected and processed. Option D…
Question
Privacy and data protection restrictions placed upon financial institutions (FIs) in the EU require that FIs must: (Select Two.)
Options
- AEngage third parties to supplement any missing customer identification information.
- BApply data minimization to avoid overreach in data collection.
- CInform a customer of any information the FI has obtained as a result of an investigation into
- DFollow strict guidelines when using machine learning and artificial intelligence.
How the community answered
(19 responses)- A5% (1)
- B74% (14)
- C21% (4)
Explanation
Financial institutions operating in the EU must comply with GDPR and AML directives, ensuring a balance between privacy and AML compliance. Option B (Correct): Data minimization is a key GDPR principle, ensuring that only necessary data is collected and processed. Option D (Correct): Strict guidelines apply to AI and machine learning models used in AML compliance to prevent bias and ensure transparency.
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