The branch manager should conduct further investigation before taking any other action, as this activity may indicate possible money laundering or fraud. The branch manager should review the transaction records of the customers and the teller, and look for any unusual or suspicious patterns, such as large or frequent cash deposits, round amounts, structured transactions, or inconsistent information. The branch manager should also interview the teller and the customers, and ask them about the nature and purpose of their relationship, the source and use of funds, and the reason for choosing the same teller. The branch manager should document the findings and report any suspicious activity to the appropriate authorities, if necessary.
CAMS Study Guide, 6th Edition, Chapter 3, Section 3.21
CAMS Study Guide, 6th Edition, Chapter 4, Section 4.21
CAMS Exam Questions and Free Practice Test, Question 322

Customer due diligence should be implemented as an ongoing activity that may vary commensurate with the risk profile of the customer. This is because the risk of money laundering or terrorist financing may change over time, depending on the customer's behavior, transactions, products, services, and geographic locations.
The institution should monitor the customer's activity and update the customer's information and risk assessment periodically, or when there are red flags or significant changes in the customer's circumstances. The institution should also apply enhanced due diligencemeasures for customers that pose higher risks, and simplified due diligence measures for customers that pose lower risks12.
1:
CAMS Certification Package - 6th Edition | ACAMS, Chapter 1: Risks and Methods of Money Laundering and Terrorist Financing, p. 18-19 2: FATF Guidance: Customer Due Diligence and Financial Inclusion, February 2018, p. 10-11, http://www.fatf-gafi.org/media/fatf/documents/reports/Guidance-CDD-and- Financial-Inclusion-2018.pdf

TheFATF Immediate Outcomes (IOs)measure the effectiveness of AML/CFT frameworks in jurisdictions.
* Option A (Correct):International cooperationis key to combating financial crime, as outlined inImmediate Outcome 2.
* Option B (Correct):Effective regulation of financial institutionsis part ofImmediate Outcome 3, which ensures compliance with AML laws.
* Option E (Correct):Investigation and prosecution of money laundering offensesalign withImmediate Outcome 7.
* Option C (Incorrect):FATF itself does not conduct investigations; FIUs share intelligence with domestic and international agencies.
* Option D (Incorrect):While financial criminals face legal consequences, there is no global mandate to restrict their access to banking.
Reference:FATF Methodology for Assessing AML/CFT Systems (Immediate Outcomes 1-11).

PEPs posehigher risks for corruption and money laundering, requiringenhanced due diligence (EDD).
* Option D (Correct):Understanding aPEP's source of wealth and fundsensureslegitimacy of transactions.
* Option A (Incorrect):Commercial databases help identify PEPsbutdo not mitigate risk alone.
* Option B (Incorrect):Lowering monitoring thresholds, not raising them, helps detect suspicious activity.
* Option C (Incorrect):Regulatory approval isnot required, but internal risk assessments are.
Reference:FATF Recommendation 12 (Politically Exposed Persons), Wolfsberg Group AML Guidance for PEPs.

According to the Anti-Money Laundering Specialist (the 6th edition) study guide, the Financial Action Task Force (FATF) is an inter-governmental body that sets the global standards for anti-money laundering and counter-terrorist financing (AML/CTF). The FATF also monitors the compliance and implementation of its recommendations by its members and other jurisdictions. To enhance its global reach and effectiveness, the FATF works with nine FATF-style regional bodies (FSRBs) that cover different regions of the world. These FSRBs have similar objectives and functions as the FATF, but they also take into account the specific characteristics and challenges of their regions. Two ways that FSRBs influence AML/CTF standards within their respective regions are:
* They issue typologies specific to their geographical region. Typologies are reports or studies that analyze the methods, trends, and patterns of money laundering and terrorist financing in a particular sector, industry, or region. FSRBs produce typologies that reflect the regional context and risks of their members and provide guidance and best practices to address them. For example, the Asia/Pacific Group on Money Laundering (APG) has issued typologies on trade-based money laundering, wildlife trafficking, and virtual assets in the Asia-Pacific region12.
* They administer mutual evaluations of participating members. Mutual evaluations are peer reviews that assess the level of compliance and effectiveness of a country's AML/CTF system against the FATF standards. FSRBs conduct mutual evaluations of their members and publish the results and recommendations in detailed reports. These reports help identify the strengths and weaknesses of each country's AML/CTF regime and provide a basis for follow-up actions and technical assistance. For example, the Caribbean Financial Action Task Force (CFATF) hasconducted mutual evaluations of its members such as Barbados, Jamaica, and Trinidad and Tobago34.
Anti-Money Laundering Specialist (the 6th edition) study guide, page 27 APG website, section on Typologies Anti-Money Laundering Specialist (the 6th edition) study guide, page 28 CFATF website, section on Mutual Evaluations