CAMS · Question #880
A bank has been fined for failing to take reasonable care to establish and maintain effective systems and controls for high-risk customers, including politically exposed persons (PEPs). Which…
The correct answer is A. Gathering sufficient information to establish the source of funds and source of wealth B. Assessing the level of money laundering risk posed by prospective and existing high-risk E. Ensuring that resources in its compliance and AML areas kept pace with the bank's growth. For high-risk customers, including PEPs, the bank should have gathered adequate information on the source of funds and wealth, assessed the money laundering risk of each customer, and ensured compliance and AML resources scaled with business growth to maintain effective systems…
Question
A bank has been fined for failing to take reasonable care to establish and maintain effective systems and controls for high-risk customers, including politically exposed persons (PEPs). Which typical financial crime risks should the bank have addressed? (Choose three.)
Options
- AGathering sufficient information to establish the source of funds and source of wealth
- BAssessing the level of money laundering risk posed by prospective and existing high-risk
- CAssessing and reviewing the minutes of the relevant committee responsible for onboarding
- DEnsuring an employee is responsible for liaison with the authorities on matters related to
- EEnsuring that resources in its compliance and AML areas kept pace with the bank's growth
How the community answered
(24 responses)- A75% (18)
- C17% (4)
- D8% (2)
Explanation
For high-risk customers, including PEPs, the bank should have gathered adequate information on the source of funds and wealth, assessed the money laundering risk of each customer, and ensured compliance and AML resources scaled with business growth to maintain effective systems and controls.
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