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A compliance officer at a financial institution has completed an investigation into a high-risk customer's activities and determined that there are strong indications of money laundering. The compliance officer has documented their findings and is ready to recommend offboarding the customer. However, the relationship manager responsible for the customer is resistant to the idea, citing the customer's significant revenue contribution to the institution.
What should the compliance officer do next to ensure the appropriate escalation and decision-making process is followed?

• A.Proceed with offboarding the customer unilaterally based on their investigation findings and anti-money laundering (AML) concerns
• B.Delay the offboarding decision and continue monitoring the customer's activities, waiting for further evidence to solidify the case for termination
• C.Attempt to persuade the relationship manager to agree with the offboarding recommendation by highlighting the potential reputational and regulatory risks associated with maintaining the relationship
• D.Escalate the matter to the institution's high-risk client committee, presenting the investigation findings and recommending offboarding while also acknowledging the relationship manager's concerns

An AML compliance officer receives notice of government update including the names of the latest terrorists sanctioned by the United Nations Security Council. Which would be the most appropriate step to take?

• A.Update training information to include the latest names
• B.Inform the customers that their funds will be frozen
• C.Update the monitoring software containing sanctioned persons
• D.Notify the Board of Directors

Which is a key reason why a financial institution (FI) conducts an enterprise-wide AML risk assessment?

• A.The board of directors and senior management are required to have an AML risk assessment for the bank.
• B.The identification of specific risk categories (i.e., export, inactivity, layman, and false locations) unique to the bank.
• C.The need to understand its overall budget needs for each department and for internal audit.
• D.The need to assess money laundering and terrorist financing risks and ensure there are adequate controls to mitigate those risks.

Financial crime risk related to the use of "hawalas" can stem from: (Select Two.)

• A.difficulty in tracking the originator, recipient, and source of transactions.
• B.heightened risks of returned transactions.
• C.informal networks used for cross-border transactions outside of the formal banking system.
• D.remote verification of identity by third-party program managers.
• E.heavy usage by senior political figures.

According to theFinancial Action Task Force (FATF) methodology, which situations would require afinancial institution (FI) to consider filing a Suspicious Activity Report (SAR)?

• A.AFI is unable to verifythe relevant customer due diligence (CDD) documents.
• B.Atransaction involves funds exchanged from crypto to fiat currencies.
• C.AFI identifies the payeras a dealer in precious metals or stones.
• D.Abeneficiary of a transactionis a politically exposed person (PEP).