Which of the following are important AML controls for a compliance manager of a regulated asset management company in the European Union to implement? (Select Two.)

Question

Options

• AInviting prospective customers for an onboarding interview
• BRejecting any politically exposed persons (PEPs) as customers
• CUnderstanding the source and origin of assets
• DPerforming negative news checks of prospective customers
• EProducing financial stability reports on interesting customers

• A
  15% (6)
• B
  5% (2)
• C
  73% (29)
• E
  8% (3)

Explanation

Understanding the source and origin of assets (C):According to the CAMS 6th Edition (Chapter: Customer Due Diligence and Enhanced Due Diligence) and the EU 4th & 5th AML Directives, regulated entities are required to take adequate measures to understand the source of funds and the origin of assets of their customers, especially when there are higher risk factors such as large transactions or PEPs."Firms must identify the source and origin of assets to ensure they are not the proceeds of crime or corruption, particularly for higher-risk customers."(CAMS 6th Edition, CDD/EDD Requirements; EU Directive 2015/849, Article 20) Performing negative news checks of prospective customers (D):Adverse media screening is an essential part of the onboarding process for identifying potential risks related to money laundering, terrorist financing, or reputational harm."Negative news or adverse media checks form a vital component of the due diligence process, helping organizations detect links to criminal or suspicious activities."(CAMS 6th Edition, CDD/EDD Requirements)

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