Key Information for Compliance Officers

D

In the given scenario, the compliance officer is reviewing the activity of the wire transfer department and has identified an unusual wire transfer from a customer's account. To conduct a thorough review of the customer's activity, several pieces of information should be considered. Let's analyze each answer choice:

A. Records of the recent deposit activity: Reviewing the customer's recent deposit activity is relevant to understand the source of funds that were used for the wire transfer. It helps determine if there are any suspicious transactions or inconsistencies in the customer's deposit behavior. This information can provide insights into the legitimacy of the funds involved in the wire transfer.

B. Wire transfer requests initiated by phone and internet: Examining the wire transfer requests initiated by phone and internet is crucial to understand the method through which the unusual wire transfer was requested. This information helps in identifying any potential red flags associated with the customer's communication channels and can provide clues about the authenticity of the wire transfer request.

C. Total number of wires processed each month over the previous year: Reviewing the total number of wires processed each month over the previous year provides a broader context of the customer's wire transfer activity. By comparing the unusual wire transfer to the customer's historical patterns, the compliance officer can determine if the transaction is an anomaly or if it aligns with the customer's regular behavior. Significant deviations from the historical data could indicate potential money laundering or fraudulent activity.

D. Whether the bank processes wire transfers through a correspondent bank: Understanding whether the bank processes wire transfers through a correspondent bank is important for assessing the complexity and potential risk associated with the wire transfer. Correspondent banking relationships can introduce additional layers of risk, such as the involvement of high-risk jurisdictions or institutions. Knowing this information allows the compliance officer to evaluate the potential exposure to money laundering or terrorist financing activities.

In summary, while all the answer choices provide relevant information, the most pertinent ones for reviewing the customer's activity in this scenario would be:

• Records of the recent deposit activity (A)
• Wire transfer requests initiated by phone and internet (B)
• Total number of wires processed each month over the previous year (C)

These factors collectively help the compliance officer gain a comprehensive understanding of the customer's transactional behavior, detect any irregularities or anomalies, and assess the potential risk of money laundering or other illicit activities.