CAMS Question #919: Real Exam Question with Answer & Explanation

The correct answer is C. Setting clear criteria for escalations to senior management D. Setting tone from the top. Senior management best practices in financial crime compliance center on governance structures and cultural leadership rather than direct operational or training participation.

Question

Which o! the following are considered best practices regarding senior management involvement in a financial crime compliance program? (Select Two.)

Options

AMandatory participation in all regulatory inspections
BMandatory attendance and review of alt financial crime trainings
CSetting clear criteria for escalations to senior management
DSetting tone from the top

Explanation

Senior management best practices in financial crime compliance center on governance structures and cultural leadership rather than direct operational or training participation.

Common mistakes.

A. Mandatory participation by senior management in all regulatory inspections is impractical, not an established best practice, and is inconsistent with risk-based governance - involvement in inspections is typically selective and proportionate.
B. Mandatory attendance at all financial crime trainings is operationally burdensome and is not a recognized best practice - the standard expectation is senior management oversight and endorsement of the training program, not personal attendance at every session.

Concept tested. Senior management governance in AML compliance programs

Reference. https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Fatf-recommendations.html

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