Acams Exam Advanced-CAMS-Audit Topic 2 Question 1 Discussion

Actual exam question for Acams's Advanced-CAMS-Audit exam

Question #: 1
Topic #: 2

Which key risk indicator should the internal auditor consider when reviewing correspondent banking activities?

AVolume of transaction activity referred by the respondent bank.

BSize and stature of a respondent bank's operations in its home country.

CNumber of respondent banks located in higher risk jurisdictions.

DNumber of correspondent banking relations terminated.
Correspondent banking relationships with banks in high-risk jurisdictions are a key risk indicator, as these relationships often pose greater AML/CFT risks due to regulatory or operational deficiencies in those jurisdictions.

Show Suggested Answer

Suggested Answer: C

by Mitsue at Jan 15, 2025, 05:36 PM

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Emerson

2 months ago

I believe the volume of transaction activity referred by the respondent bank is also important to consider.

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Brittni

3 months ago

I agree with Ivan, correspondent banking relationships in high-risk jurisdictions can pose greater AML/CFT risks.

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Ivan

3 months ago

I think the internal auditor should consider the number of respondent banks located in higher risk jurisdictions.

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3 months ago

C definitely seems like the right answer here. Correspondent banking with banks in higher-risk jurisdictions can be a major red flag for AML/CFT issues.

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Ruthann

2 months ago

It's crucial for internal auditors to pay attention to the size and stature of a respondent bank's operations in its home country as well.

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Laura

2 months ago

Yes, the number of respondent banks located in higher risk jurisdictions is an important key risk indicator to consider.

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Danilo

2 months ago

I agree, correspondent banking with banks in high-risk jurisdictions is definitely a red flag for AML/CFT issues.

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