According to the CAMS Study Guide (the 6th edition), page 184, when an FI receives a formal law enforcement request to produce documents, such as a subpoena, a search warrant, or a court order, it should designate a person responsible for the internal investigation in preparation of documents for the request. This person should be familiar with the FI's policies and procedures, the applicable laws and regulations, and the nature and scope of the request. The designated person should also coordinate with the FI's legal counsel, compliance officer, and senior management, and ensure that the FI preserves the confidentiality and integrity of the documents and the investigation.
References:
CAMS Study Guide (the 6th edition), page 1841
CAMS Certification Video Training Course, Module 4, Lesson 22

According to the Anti-Money Laundering Specialist (the 6th edition) resources, one of the red flags for money laundering in real estate transactions is the use of an appraiser who is not on the approved list of the financial institution. This could indicate a possible collusion between the appraiser and the borrower or the underwriter to inflate the value of the property and obtain a higher loan amount. The anti-money laundering specialist should document the underwriter's actions and the reasons for approving the exception, as well as the discrepancy between the appraised value and the market value of theproperty. The specialist should then file a suspicious transaction report (STR) to the relevant authorities, as required by the local regulations .
ACAMS Study Guide for the Certified Anti-Money Laundering Specialist (the 6th edition), Chapter 7: Money Laundering Risks and Methods, page 201.
ACAMS Study Guide for the Certified Anti-Money Laundering Specialist (the 6th edition), Chapter 8: Anti- Money Laundering Programs, page 227.
ACAMS Study Guide for the Certified Anti-Money Laundering Specialist (the 6th edition), Chapter 9:
Conducting or Supporting the Investigation Process, page 255.

The Basel Committee's AML guidelines emphasize risk-based customer due diligence (CDD) and beneficial ownership transparency.
Option A (Correct): CDD policies must be risk-based to apply enhanced due diligence (EDD) for high-risk customers and simplified due diligence (SDD) for low-risk customers.
Option C (Correct): Banks must verify the identity of customers and beneficial owners to prevent financial crime risks.
Why Other Options Are Incorrect:
Option B (Incorrect): Numbered accounts are not strictly prohibited but require strict transparency and due diligence measures.
Option D (Incorrect): CDD procedures must be risk-based, not uniform across all customers.
Option E (Incorrect): Transactions should not be processed until full due diligence is completed, except in rare cases where regulatory exceptions apply.
Best Practices for Risk-Based Customer Due Diligence:
Apply EDD for high-risk entities (e.g., PEPs, offshore companies).
Ensure full beneficial ownership transparency.
Implement ongoing transaction monitoring for risk assessment.
Reference:
Basel Committee's "Sound Management of ML/TF Risks"
FATF Recommendation 10 (Customer Due Diligence)
6th EU AML Directive (6AMLD) on Beneficial Ownership Transparency

This includes civil monetary penalties, criminal prosecution, and other enforcement actions. These penalties can be enforced against foreign individuals, regardless of whether the individual is located within the US or abroad. Additionally, OFAC has the authority to impose sanctions on foreign countries and foreign individuals, including individuals and entities located outside of the US.