One example of an external factor that will affect an organization's AML risk includes:
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A. B. C. D.C
https://www.ifc.org/wps/wcm/connect/e7e10e94-3cd8-4f4c-b6f8-1e14ea9eff80/45464_IFC_AML_Report.pdf?MOD=AJPERES&CVID=mKKNshyThe correct answer is C. political system changes in a specific jurisdiction.
AML risk is the risk of financial institutions becoming unknowingly involved in money laundering or terrorist financing activities. A number of factors can affect an organization's AML risk, including internal factors such as the size and complexity of the institution's operations, the nature of its products and services, and the quality of its compliance program.
External factors, on the other hand, are those that are outside of the control of the organization but can still have a significant impact on its AML risk. These factors can include changes in the regulatory environment, economic conditions, and geopolitical events.
Political system changes in a specific jurisdiction is an example of an external factor that can affect an organization's AML risk. Such changes can lead to alterations in the regulatory environment, changes in the legal framework, or changes in the risk profile of certain customers or regions. As a result, financial institutions operating in such a jurisdiction will need to reassess their AML risks, review their compliance programs, and take appropriate steps to mitigate any new risks that may arise.
Acceptance of new customer types (Option A) and introduction of a new product which will be offered to a wide range of clients (Option D) are internal factors that can affect an organization's AML risk. These changes can alter the nature of the institution's customer base, the types of transactions it processes, and the complexity of its operations. As a result, the organization will need to reassess its AML risks, review its compliance program, and take appropriate steps to mitigate any new risks that may arise.
Introduction of mobile banking for all clients (Option B) is an example of a new product or service that the organization may offer, which is an internal factor that can affect AML risk. The introduction of mobile banking may change the way that customers interact with the institution, and may increase the risk of certain types of transactions, such as peer-to-peer payments or mobile-based remittances. As a result, the institution will need to reassess its AML risks, review its compliance program, and take appropriate steps to mitigate any new risks that may arise.