Money laundering can cause which consequences for a financial institution? (Select Two.)
A.
Increases in corporate taxes
B.
Increases in investigation costs and fines
C.
Reduction in number of employees
D.
Reduction or loss of profitable business
E.
Increases in correspondent banking facilities
The Answer Is:
B, D
This question includes an explanation.
Explanation:
Money laundering can have serious consequences for financial institutions. They may face increased investigation costs and fines from regulators and law enforcement agencies for failing to detect or prevent money laundering activities. Additionally, money laundering can result in a loss of profitable business as customers and counterparties may no longer want to do business with the institution due to its reputation for being associated with illicit activity.