When seekinglegal evidence across borders,MLATsare themost formal and effective mechanism.
Option A (Correct):MLATsprovide alegal frameworkfor exchangingevidence in criminal investigations.
Option B (Incorrect):TheEgmont Secure Webfacilitatesintelligence sharing between FIUs, butnot legal evidence.
Option C (Incorrect):INTERPOL focuses on law enforcement cooperation, but not formalevidence gathering for prosecutions.
Option D (Incorrect):Direct requestsbetween anti-corruption authorities may not havelegal standing in court.
Reference:FATF Recommendation 40 (International Cooperation), UN Convention Against Corruption (UNCAC), Mutual Legal Assistance Treaties (MLATs).

When onboardingnew corporate customers,financial institutions must conduct thorough due diligence (KYC
/CDD)to assess therisk profileof the business.
Option A (Correct):Knowing the customer's business activityiscriticalto identifying if it is ahigh-risk industry (e.g., cash-intensive businesses, virtual assets, shell companies).
Option D (Correct):Identifyingsenior management and account operatorsensures that therightful owners and controllersare known.
Option E (Correct):Jurisdictional riskis a key factor. If the company operates in ahigh-risk country, enhanced due diligence (EDD) may be required.
Option B (Incorrect):Employment profiles ofall employeesarenot relevantunless the employees arepolitically exposed persons (PEPs)or linked to financial crime.
Option C (Incorrect):Knowing where a business previously bankedis not standard practiceunless the entity is flagged forsuspicious activity.
AML Risks in Corporate Banking:
Shell Companies & Complex Ownership Structures:Can be used tohide beneficial ownersand launder illicit funds.
High-Risk Countries & Sanctions Exposure:Customers linked tohigh-risk jurisdictions (FATF Grey/Blacklist) may requireEDD measures.
Unusual Business Nature:Some businesses (e.g.,cash-intensive industries, cryptocurrency firms) havehigher financial crime risks.
Best Practices:
Conduct KYC/CDD at account openingandperiodic reviewsfor risk management.
Use beneficial ownership registriesto verify theultimate beneficial owners (UBOs).
Cross-check against sanction lists(OFAC, UN, EU, etc.).
Reference:
FATF Recommendation 10 (Customer Due Diligence)
6th EU Anti-Money Laundering Directive (6AMLD)
Wolfsberg Group Guidance on Corporate Banking Risks

According to the Wolfsberg Group, a global association of leading banks that develops guidance and standards for the management of financial crime risks, both private and correspondent banks should monitor account and transactional activity after the proper identification and verification of customers, as part of their anti-money laundering and counter-terrorist financing (AML/CTF) measures12. This is consistent with the FATF Recommendation 10, which requires financial institutions to conduct ongoing due diligence on their business relationships, including scrutinising transactions to ensure that they are consistent with the customer's risk profile and source of funds3. Monitoring account and transactional activity is a key component of the risk-based approach, as it enables banks to detect and report suspicious or unusual transactions, identify changes in customer behaviour or circumstances, and update customer information and risk assessments accordingly4.
References:
1: Wolfsberg Anti-Money Laundering Principles for Private Banking (2012)
2: Wolfsberg Correspondent Banking Due Diligence Questionnaire (2017)
3: The FATF Recommendations - Financial Action Task Force
4: Risk-Based Approach for the Banking Sector - Financial Action Task Force

Financial Intelligence Units (FIUs)serve as national centers for collecting, analyzing, and disseminating AML
/CFT information.
Option B (Correct):FIUs analyze SARs and STRs to detect money laundering and terrorist financing risks.
Option D (Correct):FIUs disseminate financial intelligence to local and international law enforcement agencies and other FIUs.
Option E (Correct):FIUs receive SARs/STRs from financial institutions, which form the basis for their analysis.
Why Other Options Are Incorrect:
Option A (Incorrect):FIUs do not prosecute cases; they refer findings to law enforcement agencies.
Option C (Incorrect):FIUs share intelligence, but prosecution is handled by judicial authorities, not FIUs.
Best Practices for FIUs:
Enhance data-sharing agreements with domestic and international agencies.
Use AI and analytics tools to detect suspicious financial patterns.
Ensure secure handling of sensitive AML/CFT data.
Reference:
FATF Recommendation 29 (FIU Role & Responsibilities)
Egmont Group Guidelines on FIU Information Sharing
EU 6th AML Directive (6AMLD) on Financial Intelligence Functions