---Wire transfers are one of the most common methods of moving funds across borders and jurisdictions, and therefore pose a high risk of violating OFAC sanctions. A bank's OFAC sanctions screening audit program should include a test to review the wire transfer screening processes to ensure that potential name hits are investigated promptly and appropriately, and that any blocked or rejected transactions are reported to OFAC in a timely manner. This test would help the bank to assess the effectivenessof its screening system, identify any gaps or weaknesses, and demonstrate its compliance with OFAC regulations.
A Framework for OFAC Compliance Commitments1, page 4, section 4: Testing and Auditing OFAC Framework for Sanctions Compliance Programs2, page 2, section 4: Testing and Auditing OFAC Sanctions List Search Tool3

According to the ACAMS study guide, one of the best practices for dealing with law enforcement inquiries is to verify the identity and authority of the law enforcement officer before providing any information (p. 224).
This is to ensure that the inquiry is legitimate and not a phishing attempt or a breach of confidentiality. The compliance officer should also document the inquiry and the information provided, and consult with legal counsel if necessary. The other options are not appropriate, as they may either violate the law, compromise the investigation, or create unnecessary work.
ACAMS. (2020). Study Guide for the Certification Examination for Anti-Money Laundering Specialists (6th ed.). Miami, FL: ACAMS.
What Is An AML Officer1
Bank Secrecy Act/Anti-Money Laundering: Requests by Law Enforcement for Financial Institutions to Maintain Accounts 2 Reference:http://files.acams.org/pdfs/English_Study_Guide/Chapter_5.pdf(12)

Anenterprise-wide risk assessment (EWRA)must beupdated when major changesoccur thatimpact AML risk exposure.
* Option A (Correct):New products and services(e.g., cryptocurrency trading, private banking)can introduce new money laundering risks.
* Option B (Correct):Restructuring compliance teams can impact AML oversightand risk assessment effectiveness.
* Option E (Correct):Mergers and acquisitionsmay bringlegacy compliance issues and different risk cultures.
Why Other Options Are Incorrect:
* Option C (Incorrect):Changes in product leadership do not automatically change risk exposureunless the product itself changes.
* Option D (Incorrect):Using new technology for existing products does not inherently change AML risks, thoughnew digital products might.
Best Practices for Enterprise-Wide AML Risk Assessment Updates:
* Review AML program effectiveness before launching new services.
* Assess legacy compliance issues when acquiring or merging with another entity.
* Align risk frameworks with regulatory changes.
Reference:
FATF Recommendation 1 (Risk-Based Approach to AML)
Wolfsberg Group Enterprise-Wide Risk Assessment Guidelines
6th EU AML Directive (6AMLD) on Financial Institution Risk Management

Section 313 of the USA PATRIOT Act prohibits U.S. financial institutions from establishing, maintaining, administrating or managing correspondent accounts for foreign shell banks. A foreign shell bank is a foreign bank that does not have a physical presence in any country. To ensure compliance with this prohibition, U.S.
financial institutions must obtain from each foreign bank that maintains a correspondent account the identity of each owner of the foreign bank and the nature and extent of each owner's ownership interest. This information must be updated within 30 days of any change.
USA PATRIOT Act | FinCEN.gov, Section 313
US PATRIOT ACT | State Street

On-line banking offers a significant money laundering risk to a financial institution because:
* The nature of on-line banking can make it difficult to establish who is controlling the account. On-line banking allows customers to access their accounts remotely, without face-to-face contact with the financial institution. This can pose challenges for verifying the identity and legitimacy of the account holder, especially if the account is opened on-line or through a third-party intermediary. On-line banking can also facilitate the use of anonymous or fictitious identities, or the use of proxies or nominees to hide the true beneficial owner of the account.
* The ease of access through the internet enables cross border movement of funds. On-line banking allows customers to transfer funds quickly and easily across different jurisdictions, without physical movement of cash or other instruments. This can increase the risk of money laundering, as funds can be moved to or from high-risk countries or regions, or through multiple accounts or financial institutions, to obscure the origin, destination, or purpose of the funds. On-line banking can also enable customers to access or use alternative payment systems or virtual currencies, which may have lower regulatory oversight or transparency standards than traditional banking systems.
* The speed of electronic transaction enables execution of multiple complex transactions within short time frame. On-line banking allows customers to conduct transactions in real time, with minimal or no human intervention or verification. This can increase the risk of money laundering, as customers can execute multiple transactions in a short period of time, or use complex transaction structures or patterns, to avoid detection or reporting thresholds, or to conceal the source, nature, or ownership of the funds.
On-line banking can also enable customers to use automated or algorithmic trading systems, which may generate large volumes of transactions that are difficult to monitor or analyze.
CAMS Study Guide - 6th Edition, Chapter 5, pages 139-140
CAMS Certification Exam Outline, Domain 2, Task 2.1, Skill 2.1.1
Online Banking and Money Laundering, ACAMS Today, September 2012