AML compliancemust be balanced with data privacy laws, such asGDPR (EU), CCPA (U.S.), and jurisdictional banking secrecy laws.
Option A (Correct):Data protection laws regulate how customer information can be shared internallyand externally, ensuringconfidentiality and regulatory compliance.
Option B (Incorrect):Enterprise risk assessments do not determine data sharing rules; legal and regulatory policies do.
Option C (Incorrect):Risk rating does not impact legal data-sharing restrictions.
Option D (Incorrect):AML policies must align with data protection laws, not override them.
Key Data Privacy Considerations in AML Compliance:
GDPR (Article 6) requires a legal basis for processing personal data, including AML investigations.
Banking secrecy laws restrict sharing certain customer information without consent or legal obligation.
Internal information-sharing policies must be clear on what AML teams can disclose.
Best Practices for AML & Data Privacy Compliance:
Consult legal teams before sharing AML-related data internally or externally.
Ensure compliance with GDPR, CCPA, and banking secrecy laws.
Minimize data sharing to what is strictly necessary.
[Reference:, FATF Recommendation 2 (National Cooperation and Coordination), EU GDPR Article 6 (Lawful Processing of Personal Data), Wolfsberg Group AML & Data Privacy Guidelines, , , , ]
