A company is looking to reduce the likelihood of employees in the finance department being involved with money laundering. Which of the following controls would BEST mitigate this risk?

The correct answer is B. Enforce mandatory vacations. Mandatory vacation (also called forced leave) is a well-established financial industry control specifically designed to detect fraud, embezzlement, and money laundering. The reasoning is that employees engaged in ongoing fraudulent schemes must be present to maintain or conceal…

Security program management and oversight

Question

Options

AImplement privacy policies
BEnforce mandatory vacations
CImplement a security policy
DEnforce time of day restrictions

How the community answered

(18 responses)

B
89% (16)
C
6% (1)
D
6% (1)

Explanation

Mandatory vacation (also called forced leave) is a well-established financial industry control specifically designed to detect fraud, embezzlement, and money laundering. The reasoning is that employees engaged in ongoing fraudulent schemes must be present to maintain or conceal them. When forced to take leave, another employee temporarily assumes their duties and is likely to discover discrepancies or suspicious activity. This control has historically uncovered financial crimes. Privacy policies and general security policies are too broad to specifically deter money laundering. Time-of-day restrictions limit when someone works but do not expose ongoing fraud the way mandatory vacation does.

Topics

#mandatory vacation#fraud prevention#personnel controls#insider threat

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