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CAMS · Question #783

The chief compliance officer (CCO) at a bank approved offering trade finance services to a company which is established within a country with a weak democratic system routinely reviews news on…

The correct answer is A. The European Commission and the High Representative issue a joint proposal for an import ban. A proposed EU import ban on refined oil products would be of greatest concern to the bank's trade finance services, as it directly targets a core revenue-generating sector (oil production) of the company's country. This could lead to significant disruptions in trade flows…

Compliance Standards (International AML/CFT Standards and the role of FATF)

Question

The chief compliance officer (CCO) at a bank approved offering trade finance services to a company which is established within a country with a weak democratic system routinely reviews news on upcoming targeted economic sanction regulations in the EU, a major import partner for the country's production of crude oil. Which of the following pieces of news would be of greatest concern?

Options

  • AThe European Commission and the High Representative issue a joint proposal for an import ban
  • BThe European Commission and the High Representative issue a joint proposal for an import ban
  • CThe Council of the European Union adopts a new export control regime for electronic equipment
  • DThe Council of the European Union adopts a new import restriction regime for goods coming from

How the community answered

(19 responses)
  • A
    79% (15)
  • B
    5% (1)
  • C
    11% (2)
  • D
    5% (1)

Explanation

A proposed EU import ban on refined oil products would be of greatest concern to the bank's trade finance services, as it directly targets a core revenue-generating sector (oil production) of the company's country. This could lead to significant disruptions in trade flows, regulatory risk exposure, and potential sanctions violations.

Topics

#EU sanctions#targeted economic sanctions#crude oil#sanctions risk assessment

Community Discussion

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