Which reputations risk consequence could a financial entity face for violating AML laws?
A.
Loss of high-profile customers
B.
Seizure of assets
C.
Increased audit costs to monitor behavior
D.
Monetary penalties
The Answer Is:
D
This question includes an explanation.
Explanation:
According to the Certified Anti-Money Laundering Specialist (CAMS) Manual [1], 6th edition, financial entities that violate Anti-Money Laundering (AML) laws can face several reputational risks such as loss of high-profile customers, seizure of assets, increased audit costs to monitor behavior, and monetary penalties. For example, the US Treasury's Financial Crimes Enforcement Network (FinCEN) imposes civil money penalties on "persons who willfully violate, attempt to violate, conspire to violate, or cause any violation of any provision of the Bank Secrecy Act or its implementing regulations." (CAMS Manual, 6th edition, page 26).
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