In situations involving significant AML concerns, especially with high-risk clients, thecompliance officer must follow proper escalation procedureswithin the institution. The appropriate course of action is toescalate the matter to a senior governance body, such as ahigh-risk client committee, which is typically tasked with balancing AML risk against business considerations.
Unilateral offboarding (Option B)may violate internal protocols.
Persuading the relationship manager (Option C)bypasses formal governance.
Delaying action (Option D)risks further exposure to regulatory or reputational damage.
This escalation ensuresdocumented risk-based decision-makingand demonstrates to regulators that the institution appliesstructured and objective AML governance.
Reference: ACAMS CAMS Study Guide - 6th Edition, Chapter:Compliance Governance and Risk Escalation Processes- Section:Governance Structures for High-Risk Customers

The principles of the Egmont Group of Financial Intelligence Units (FILLs) aimed at maximizing cooperation between FILLs to more effectively combat money laundering are [1]:
B: Information exchange should take place informally, without too many formal prerequisites. (CAMS Manual, 6th Edition, Page 55) E: It is within an FlU's authority to sign Memorandums of Understanding independently. (CAMS Manual, 6th Edition, Page 56)

Customer composition and product offerings are two important factors that affect the level of risk exposure for a financial institution (FI) in terms of money laundering and terrorist financing. Customer composition refers to the types of customers that the FI serves, such as individuals, businesses, non-profit organizations, or politically exposed persons (PEPs). Different customer segments may pose different levels of risk depending on their activities, sources of funds, geographic locations, and connections to other entities. For example, customers that are cash-intensive, have complex ownership structures, operate in high-risk jurisdictions, or are associated with PEPs may present higher risk indicators than customers that are transparent, regulated, and operate in low-risk jurisdictions12. Product offerings refer to the types of products, services, and transactions that the FI provides, such as deposits, loans, wire transfers, trade finance, or digital assets. Different products, services, and transactions may have different levels of vulnerability to money laundering and terrorist financing depending on their features, complexity, volume, and speed. For example, products that are anonymous, involve high-value or cross-border transfers, enable rapid movement of funds, or involve new or emerging technologies may present higher risk indicators than products that are identifiable, involve low- value or domestic transfers, require multiple verification steps, or involve established or traditional technologies12.
1: Risk Assessment: Risk Factors & Mitigating Measures2
2: Risk Assessment: Process, Examples, & Tools1

Wire transfer requests initiated by phone and internet should be included in the review of the customer's activity, as they may indicate a higher risk of fraud, identity theft, or money laundering. Phone and internet wire transfers are more vulnerable to cyberattacks, phishing, or social engineering, and may bypass some of the verification and authentication procedures that are applied to in-person or paper-based requests. Therefore, the compliance officer should monitor these requests for any signs of unusual or suspicious activity, such as changes in beneficiary, amount, frequency, or destination of the wires.
ACAMS CAMS Certification Study Guide, 6th Edition, page 41
ACAMS CAMS Certification Exam Outline, 6th Edition, Domain 2, Task 2.1
ACAMS CAMS Certification Video Training Course, Module 2, Lesson 2.1
Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition), Question 325

Spear phishing is a targeted form of phishing scam in which cybercriminals send highly convincing emails to specific individuals within an organization. The emails often contain personal information or details that make them seem legitimate and trustworthy. The goal of spear phishing is to trick the recipients into clicking a malicious link or downloading an infected attachment, or to reveal confidential information or money to the attackers. In this case, the customers of the telecommunications firm received an email that pretended to be from the company, but was actually a fake. The email directed them to a spoofed website that asked for their personal information, which could be used for identity theft or fraud. This is a clear example of a spear phishing attack.
References:
What is Spear Phishing? Definition and Prevention | Fortinet
What is spear phishing? Examples, tactics, and techniques | CSO Online
Spear phishing - OxfordDictionaries