A bank employee reviews wire transactions looking for indications of wire stripping.
Which two actions should the employee take to complete appropriate bank procedures? (Choose two.)
Click on the arrows to vote for the correct answer
A. B. C. D.CD
https://www.lexology.com/library/detail.aspx?g=79732c5e-b4bf-456a-9604-712f44f5a930Sure, I would be happy to explain the answer options for this question.
Wire stripping refers to the practice of removing or concealing information about the originator or beneficiary of a wire transfer. This practice is commonly used by criminals to hide the true source or destination of illicit funds. A bank employee who is responsible for reviewing wire transactions for indications of wire stripping should take certain actions to complete appropriate bank procedures. Let's examine the answer options to see which actions would be most appropriate:
A. Compare the wire transaction as it enters and after it leaves the bank:
This action is a recommended best practice for detecting wire stripping. By comparing the wire transaction as it enters and after it leaves the bank, an employee can identify any changes to the transaction, such as alterations to the originator or beneficiary information. This can help to detect attempts to strip or conceal this information. Therefore, this option is a correct answer.
B. Check for suspicious phrases usually used to conceal originator or beneficiary identity:
This action is also a recommended best practice for detecting wire stripping. Criminals often use suspicious phrases or codes to conceal the true identity of the originator or beneficiary of a transaction. By identifying these phrases, an employee can help to detect attempts to strip or conceal this information. Therefore, this option is also a correct answer.
C. Identify large incoming wire transactions received on behalf of a foreign client with no explicit reason:
While this action may be relevant for detecting other types of suspicious activity, it is not specifically related to detecting wire stripping. Therefore, this option is not a correct answer.
D. Identify wire transaction activity to or from a financial institution located in a higher risk jurisdiction:
Similar to option C, this action may be relevant for detecting other types of suspicious activity, but it is not specifically related to detecting wire stripping. Therefore, this option is also not a correct answer.
In summary, the two actions that a bank employee should take to complete appropriate bank procedures for detecting wire stripping are to compare the wire transaction as it enters and after it leaves the bank (option A) and to check for suspicious phrases usually used to conceal originator or beneficiary identity (option B).