A financial institution receives a regulatory enforcement action because of deficiencies in its anti- money laundering program. Which action should the board of directors take?

Question

Options

• ATerminate the compliance officer and staff
• BPurchase and install a new suspicious activity monitoring system
• CHire an attorney with instructions to protest the enforcement action
• DInstruct the compliance officer to develop a plan to remediate the institution's anti-money

• A
  5% (1)
• B
  5% (1)
• C
  14% (3)
• D
  77% (17)

Explanation

The board of directors is ultimately responsible for ensuring that the financial institution has an effective anti-money laundering program that complies with the applicable laws and regulations. If the institution receives a regulatory enforcement action, the board should take prompt and corrective actions to address the deficiencies and mitigate the risks of further violations or penalties. One of the most important actions is to instruct the compliance officer to develop a plan to remediate the institution's anti-money laundering program, which should include a root cause analysis, a gap assessment, a timeline, and a budget. The board should also monitor the implementation and progress of the remediation plan, and communicate with the regulators on a

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