Using the customer profile and expected activity information, a financial institution should be able to identify transactions that are difficult to:
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A. B. C. D.D
The correct answer is A. make economic sense.
Financial institutions are required to implement an effective anti-money laundering (AML) program to prevent, detect, and report suspicious activities that may be indicative of money laundering, terrorist financing, or other illegal activities. To achieve this goal, a financial institution should be able to identify transactions that are difficult to make economic sense based on the customer's profile and expected activity.
In other words, if a customer's expected activity and the transactions conducted do not align with the customer's known business or personal activities, it may indicate potential money laundering or other illegal activities. For example, if a customer who has a low-income profile suddenly deposits a large amount of money in their account, this transaction may be difficult to make economic sense and warrant further investigation.
By identifying transactions that are difficult to make economic sense, financial institutions can effectively monitor and detect potential suspicious activities and report them to the appropriate authorities. It is essential for financial institutions to implement robust customer due diligence processes to ensure that they have sufficient information about their customers' profiles and expected activities to identify suspicious transactions.