Assessing the money laundering risk related to a product within the financial sector includes assessing the: (Select Two.)

The correct answer is A. governance arrangements B. complexity of the products. Governance arrangements (A):"Sound governance and risk management arrangements are fundamental to assessing and managing ML/TF risk in products and services."(CAMS 6th Edition, Risk-Based Approach for Products and Services) Complexity of the products (B):"Complexity increases ris

AML/CFT Compliance Programs

Question

Options

Agovernance arrangements
Bcomplexity of the products
Cresults of the last audit
Dfinancial status of the business

How the community answered

(33 responses)

A
82% (27)
C
12% (4)
D
6% (2)

Explanation

Governance arrangements (A):"Sound governance and risk management arrangements are fundamental to assessing and managing ML/TF risk in products and services."(CAMS 6th Edition, Risk-Based Approach for Products and Services) Complexity of the products (B):"Complexity increases risk--products that are highly complex, opaque, or allow for multiple layers or jurisdictions are more vulnerable to misuse for ML/TF."

Topics

#product risk assessment#governance arrangements#product complexity#risk-based approach

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