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CAMS · Question #865

CAMS Question #865: Real Exam Question with Answer & Explanation

The correct answer is C. Revisiting the post-transaction monitoring system parameters and thresholds. A low number of sanctions screening alerts relative to the size and scope of operations may indicate overly restrictive or inappropriate monitoring parameters. Revisiting and adjusting the post- transaction monitoring system parameters and thresholds ensures that the system is ca

Question

Upon learning of a potential weakness through an organization's enterprise-wide sanctions risk assessment relating to a low number of sanctions screening alerts generated compared to the business size and operations identified, which action would best ensure the risk area is properly managed and remediated to the best possible extent?

Options

  • AReviewing the enterprise-wide risk assessment methodology
  • BEnhancing staff training on the documentation of justification on closed alerts
  • CRevisiting the post-transaction monitoring system parameters and thresholds
  • DReviewing the fuzzy logic currently adopted in the screening system

Explanation

A low number of sanctions screening alerts relative to the size and scope of operations may indicate overly restrictive or inappropriate monitoring parameters. Revisiting and adjusting the post- transaction monitoring system parameters and thresholds ensures that the system is calibrated to detect potential sanctions breaches effectively.

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