A compliance analyst is reviewing recent activity between a publicly traded company and a company in a high risk jurisdiction. Which detail suggests that escalation is warranted?
A.
The activity is a reputational risk to the financial institution.
B.
It is the first time the originator wires the beneficiary.
C.
Beneficiary is active in a related industry.
D.
Payments to the beneficiary are for large dollar amounts.
Most Votes
Answer:
D
User Votes:
A 64 votes
50%
B 8 votes
50%
C 2 votes
50%
D 67 votes
50%
Discussions
0/ 1000
Sorak
1 year, 8 months ago
A is reputational risk
AnaA.
1 year, 8 months ago
D. Les paiements au bénéficiaire concernent des montants importants.
alban_999
4 months, 3 weeks ago
Activities that pose a reputational risk can impact the institution's credibility, customer trust, and overall business operations.
manju
3 months, 3 weeks ago
A us the answer
Oluwaseun15
2 months, 4 weeks ago
The activity is a reputational risk to the financial institution
imranmazhar555
1 month, 2 weeks ago
The primary responsibility of a compliance analyst is not only to detect suspicious transactions but also to protect the financial institution from legal, regulatory, and reputational risk.
trinka5
1 week, 6 days ago
Correct Answer: A Why? Any transaction involving a high-risk jurisdiction that could pose reputational risk is a red flag under AML/CFT standards and should be escalated. Reputational risk is a major concern for regulators and bank management alike.
Want to join our community?
Please log in or signup in order to use this feature
A is reputational risk
D. Les paiements au bénéficiaire concernent des montants importants.
Activities that pose a reputational risk can impact the institution's credibility, customer trust, and overall business operations.
A us the answer
The activity is a reputational risk to the financial institution
The primary responsibility of a compliance analyst is not only to detect suspicious transactions but also to protect the financial institution from legal, regulatory, and reputational risk.
Correct Answer: A
Why? Any transaction involving a high-risk jurisdiction that could pose reputational risk is a red flag under AML/CFT standards and should be escalated. Reputational risk is a major concern for regulators and bank management alike.