A compliance officer provides an overview of the bank's anti-money laundering program to a group of new tellers during employee orientation.
Which training element should be delivered to this audience?
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A. B. C. D.B
The appropriate training element that should be delivered to the group of new tellers during employee orientation is B. Large cash transaction reporting procedures.
Here's a detailed explanation:
A. Results of recent risk assessments: While it is important for compliance officers to be aware of the results of recent risk assessments, this information may not be the most relevant or necessary for new tellers during their orientation. Risk assessments typically involve evaluating the potential risks faced by the financial institution, and the results are used to develop or modify the anti-money laundering (AML) program. This information is more relevant to compliance officers and management personnel responsible for implementing and monitoring the AML program.
B. Large cash transaction reporting procedures: This option is the most appropriate training element for new tellers. Large cash transaction reporting procedures are an integral part of the AML program. Financial institutions are required to report certain transactions involving large amounts of cash to the appropriate authorities, as per the regulations set forth by the Financial Crimes Enforcement Network (FinCEN) in the United States. Tellers are often the front-line employees who handle cash transactions and are responsible for identifying and reporting suspicious activities or transactions that meet the reporting thresholds. Training new tellers on the procedures for identifying and reporting large cash transactions is crucial in ensuring compliance with AML regulations.
C. The financial institution's surprise cash audit policy: While surprise cash audits are an important internal control mechanism for deterring and detecting cash-related irregularities, this training element is more relevant to tellers after they have become familiar with the basic procedures and responsibilities related to cash handling. It is advisable to provide this information to tellers once they have a good understanding of their daily cash handling responsibilities and the AML reporting procedures.
D. Past check fraud losses incurred by the financial institution: Although check fraud is a financial crime, it is not directly related to anti-money laundering efforts. Training tellers about past check fraud losses may be important for fraud prevention, but it does not directly address AML program requirements. The focus of the CAMS certification and the AML program is primarily on preventing money laundering and terrorist financing activities.
In summary, the most appropriate training element for new tellers during employee orientation would be B. Large cash transaction reporting procedures. This training element directly relates to the tellers' responsibilities in identifying and reporting suspicious cash transactions, which is an important aspect of the AML program.