AML compliancemust balance financial crime prevention with data privacy regulationssuch asGDPR (EU) and CCPA (U.S.).
Option B (Correct):Data minimization ensures that only essential data is collected and processed, reducing privacy risks.
Option C (Correct):Regularly updating policies helps organizations align with evolving privacy laws and AML requirements.
Why Other Options Are Incorrect:
Option A (Incorrect):Unrestricted access to customer data increases the risk of data breaches and privacy violations.
Option D (Incorrect):Repurposing data beyond AML purposescan violatedata protection laws (e.g., GDPR's purpose limitation principle).
Key Data Privacy Considerations for AML Compliance:
Data minimization:Only collect data necessary for risk assessment.
Access controls:Limit employee access to customer data based on job role.
Transparency:Inform customers about how their data is used for AML compliance.
[Reference:, FATF Recommendation 10 (Customer Due Diligence), General Data Protection Regulation (GDPR), Article 5, Wolfsberg Group Data Privacy in AML Guidelines, , , , ]
