The compliance officer should provide regular updates of corrective action to the designated board committee, as they are ultimately responsible for the oversight of the organization's anti-money laundering program. The board committee should be informed of the audit findings, the corrective action plan, the progress and challenges, and the completion of the remediation. This will help ensure that the board committee is aware of the risks and issues, and can provide guidance and support to the compliance officer and the management.
=
ACAMS CAMS Certification Study Guide 6th Edition, Chapter 2, page 671
ACAMS CAMS Certification Exam Outline, Domain 2, Task 2.52
ACAMS CAMS Certification Flashcards, Question 893

According to the ACAMS study guide, one of the red flags for money laundering in cash-intensive businesses is "the presence of privately-owned ATMs on the premises" (p. 222). This could indicate that the business is using the ATM to deposit or withdraw large amounts of cash from illicit sources, or to facilitate the movement of funds across borders. The other options are not necessarily indicative of money laundering risk, as they could be explained by legitimate factors such as the change in customer preferences, the economic situation, or the expansion of the business.
ACAMS. (2020). Study Guide for the Certification Examination for Anti-Money Laundering Specialists (6th ed.). Miami, FL: ACAMS.
CFI. (2023)Money Laundering - Overview, How It Works, Example 1. Retrieved from
https://corporatefinanceinstitute.com
CALERT. (2016)How Do Criminals Launder Money Through a Restaurant? 2. Retrieved from https://calert.
info

The Basel Committee on Banking Supervision's Customer Due Diligence for Banks Paper recommends that banks should verify the bank has a physical presence in the country where it is incorporated and confirm the bank is subject to regulatory supervision with adequate anti-money laundering laws before opening a correspondent account. These steps are intended to prevent the establishment of relationships with shell banks, which are banks that have no physical presence in any country and are not affiliated with a regulated financial group. Shell banks pose a high risk of money laundering and terrorist financing, as they can be used to hide the identity and source of funds, evade regulatory oversight, and facilitate illicit transactions.
Therefore, banks should conduct enhanced due diligence on correspondent banks that operate in offshore jurisdictions, where the regulatory standards and transparency may be lower or insufficient.
ACAMS CAMS Certification Study Guide, 6th Edition, Chapter 4, Section 4.3.1, p. 1091 ACAMS CAMS Certification Exam Outline, 6th Edition, Domain 2, Task 2.2, p. 52 Basel Committee on Banking Supervision, Customer Due Diligence for Banks, October 2001, p. 13-143

Bank A should file a suspicious transaction report (STR) on the transaction in Country A, as it is the financial institution that observes and processes the suspicious activity in its jurisdiction. According to the FATF Recommendations, financial institutions should report any transaction that they have reason to suspect is related to money laundering, terrorist financing, or other criminal activities, regardless of the amount involved1. The STR should include information about the originator, the beneficiary, and the purpose of the transaction, as well as the reasons for suspicion2. Bank A should also comply with any legal or regulatory requirements in Country A regarding the reporting of cross-border wire transfers3.
1: FATF Recommendation 20 - Reporting of suspicious transactions
2: FATF Interpretive Note to Recommendation 20
3: FATF Recommendation 16 - Wire transfers
Reference:http://www.fatf-gafi.org/media/fatf/documents/recommendations/pdfs/FATF%
20Recommendations%20(approved%20February%202012)%20reprint%20May%202012%20web%20version.
pdf(page
19, DNFBPs: customer due diligence, bulleted point (b))

AML controls should bemeasured for effectivenessusingquantifiable metrics.
* Option D (Correct):Thetrue positive/false positive ratioassesses theefficiencyof AML detection.
* Option A (Incorrect):Thenumber of alerts alonedoes not measureeffectiveness, as many could befalse positives.
* Option B (Incorrect):Client exitsdo not indicate whether an AML program isworking properly.
* Option C (Incorrect):High-risk customer onboardingmust bemonitored, but it does not indicate AML effectiveness.
Reference:FATF Guidance on AML Risk Management, Wolfsberg Group AML Effectiveness Indicators, FinCEN SAR Filing Effectiveness Reports.