CAMS · Question #765
A bank is preparing for a regulatory exam after a previous regulatory exam identified weaknesses in its AML program. Since the last exam, the bank has: - Improved its written AML program - Hired an…
The correct answer is C. The bank may face the risk of regulatory orders to remediate its AML program despite addressing D. The bank may face civil or criminal penalties if it is unable to demonstrate sustained improvement. Regulatory exams assess whether financial institutions comply with AML/CFT laws and have adequately addressed previous deficiencies. Option C (Correct): Regulators may still issue remediation orders if the bank's improvements do not fully resolve prior AML compliance gaps…
Question
A bank is preparing for a regulatory exam after a previous regulatory exam identified weaknesses in its AML program. Since the last exam, the bank has:
- Improved its written AML program
- Hired an experienced AML compliance officer
- Demonstrated a stronger culture of compliance
- Focused on clearing its transaction monitoring case backlog and
enhancing its sanctions screening program Which of the following are correct? (Select Two.)
Options
- AThe bank is likely to face secondary sanctions from global financial institutions despite addressing
- BThe bank is protected from reputational risk arising from any regulatory action because regulatory
- CThe bank may face the risk of regulatory orders to remediate its AML program despite addressing
- DThe bank may face civil or criminal penalties if it is unable to demonstrate sustained improvement
- EThe regulatory agency may require the bank's board of directors to publicly share the actions
How the community answered
(36 responses)- A6% (2)
- B3% (1)
- C83% (30)
- E8% (3)
Explanation
Regulatory exams assess whether financial institutions comply with AML/CFT laws and have adequately addressed previous deficiencies. Option C (Correct): Regulators may still issue remediation orders if the bank's improvements do not fully resolve prior AML compliance gaps. Option D (Correct): If deficiencies persist, regulators may impose civil or criminal penalties.
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