Actions for AML Specialist at a Bank
Question
Law enforcement is confidentially investigating 20 individuals suspected of belonging to a criminal network allegedly involved in laundering tens of millions of euros for cybercriminals.
Which actions need to be taken by the AML Specialist at a bank upon learning the alert? (Choose two.)
Answers
Explanations
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A. B. C. D. E.AB
Upon learning that law enforcement is confidentially investigating 20 individuals suspected of belonging to a criminal network allegedly involved in laundering tens of millions of euros for cybercriminals, the AML Specialist at a bank should take the following actions:
Involve the bank's legal and compliance function to address the gravity of the matter: The first action that an AML specialist should take is to involve the bank's legal and compliance function to address the gravity of the matter. This is because the bank has a legal and ethical obligation to prevent money laundering and terrorist financing activities. If there is a suspicion that the bank may have been involved in such activities or may have information that could assist in the investigation, the bank must cooperate with law enforcement agencies. By involving the legal and compliance function, the AML specialist ensures that the bank follows the necessary procedures and protocols in dealing with the situation.
Perform a search on the bank's client data platform to determine if the bank has had any business with the named individuals: The second action that an AML specialist should take is to perform a search on the bank's client data platform to determine if the bank has had any business with the named individuals. This is important because if the bank has had any transactions with the individuals under investigation, it may indicate that the bank has been unwittingly involved in money laundering activities. By performing this search, the AML specialist can identify any red flags or suspicious transactions related to these individuals, which can be reported to the bank's compliance function and/or law enforcement agencies.
The following actions should not be taken by the AML Specialist: A. Respond to law enforcement that their request without a judicial order would breach the bank's GDPR duty with respect to its clients: This is not an appropriate action because if law enforcement requests information from the bank in connection with a money laundering investigation, the bank should comply with such requests. The GDPR duty with respect to clients does not prevent the bank from disclosing information to law enforcement if required by law or necessary for the prevention, detection or investigation of money laundering activities.
B. Report findings back to law enforcement only if they are of any significance: This is not an appropriate action because if the bank has any relevant information about the individuals under investigation, it must be reported to law enforcement, regardless of whether the findings are of any significance. The bank has an obligation to assist law enforcement agencies in their investigations.
C. Send out an email to all of the bank's client advisors to request information on any of the individuals: This is not an appropriate action because it may compromise the investigation and alert the suspects. Moreover, it may violate data protection laws and confidentiality obligations towards the bank's clients. The bank should only disclose information to law enforcement agencies if required by law or necessary for the prevention, detection, or investigation of money laundering activities.
