Acams Exam Advanced-CAMS-Audit Topic 4 Question 9 Discussion

Actual exam question for Acams's Advanced-CAMS-Audit exam

Question #: 9
Topic #: 4

Considering recent changes in the bank's correspondent banking business. Which is the most important risk indicator for the internal auditor to review?

AThe management and ownership of the respondent bank.

BThe purpose of the services provided to the respondent bank.

CThe jurisdiction in which the respondent bank is located.

DThe major business activities of the respondent bank.
Jurisdictional risk is critical in correspondent banking due to potential exposure to countries with weaker AML/CFT controls, high corruption levels, or sanctions.

Show Suggested Answer

Suggested Answer: C

by Kayleigh at Mar 07, 2025, 02:51 AM

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William

2 months ago

I see your point, Lamar. It's all about minimizing exposure to high-risk countries.

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Dallas

2 months ago

Haha, well if the bank is located in a tropical paradise, I'd say that's a good sign! But seriously, C is the correct answer. Can't take any chances with those risky jurisdictions.

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Shannan

13 days ago

Haha, well if the bank is located in a tropical paradise, I'd say that's a good sign! But seriously, C is the correct answer. Can't take any chances with those risky jurisdictions.

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Carmela

15 days ago

Jurisdictional risk is critical in correspondent banking due to potential exposure to countries with weaker AML/CFT controls, high corruption levels, or sanctions.

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Santos

16 days ago

D) The major business activities of the respondent bank.

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Hyman

17 days ago

C) The jurisdiction in which the respondent bank is located.

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Penney

26 days ago

B) The purpose of the services provided to the respondent bank.

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Gladis

1 months ago

A) The management and ownership of the respondent bank.

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Lamar

2 months ago

Yes, that's important too, but jurisdictional risk can have a bigger impact on AML/CFT controls.

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Mel

2 months ago

I agree, C is the way to go. Jurisdictional risk is crucial in this business. You don't want to be caught up in any shady international dealings, am I right?

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Artie

2 months ago

But what about the management and ownership of the respondent bank? Isn't that important too?

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Odette

2 months ago

C) The jurisdiction in which the respondent bank is located. Absolutely, that's the most important factor. I can't believe anyone would even consider the other options.

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