In performing a risk analysis, which factor(s) should a financial institution review?
A.
The level of its gross revenue
B.
Recent regulatory actions against financial institutions of comparable size
C.
Its customer base, location, products and services
D.
The adequacy and completeness of its STR filings
The Answer Is:
C
This question includes an explanation.
Explanation:
these are the main factors that determine the inherent money laundering risk of a financial institution. The customer base, location, products and services of a financial institution affect the type, volume, and complexity of transactions that it processes, as well as the exposure to high-risk customers, jurisdictions, and activities12. A financial institution should review these factors regularly and conduct a comprehensive risk assessment to identify, measure, and mitigate its money laundering risk34.
Anti Money Laundering Risk Assessment - Financial Crime Academy1