Acams Advanced-CAMS-Audit Exam - 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

Limited Time Offer

25%

Off

Get Premium Advanced-CAMS-Audit Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Dalene

4 months ago

I disagree, major business activities should be prioritized!

upvoted 0 times

...

Maryann

4 months ago

The purpose of services is important too, can't overlook that.

upvoted 0 times

...

Lizbeth

4 months ago

Surprised that jurisdiction isn't the top pick for everyone!

upvoted 0 times

...

Chun

4 months ago

I think the management and ownership matter more.

upvoted 0 times

...

Caren

4 months ago

Definitely the jurisdiction is key!

upvoted 0 times

...

Willodean

5 months ago

Jurisdictional risk definitely stood out in our practice questions. It makes sense given the current regulatory environment.

upvoted 0 times

...

India

5 months ago

I feel like the purpose of services provided is important too, but I can't recall if it was emphasized as much as jurisdiction.

upvoted 0 times

...

Brigette

5 months ago

I'm not entirely sure, but I think the management and ownership of the respondent bank could also be crucial. We had a case study on that.

upvoted 0 times

...

Denae

5 months ago

I remember discussing the importance of jurisdictional risk in our last class. It seems like a key factor for internal auditors.

upvoted 0 times

...

Mireya

5 months ago

Jurisdiction is definitely the way to go here. Regulatory and corruption risks in certain countries are a major concern in correspondent banking.

upvoted 0 times

...

Devora

5 months ago

The management and ownership of the respondent bank seems like the most critical risk indicator to me. That can give you a good sense of the overall risk profile.

upvoted 0 times

...

Dacia

5 months ago

Hmm, I'm not totally sure about this one. I was thinking the purpose of the services provided to the respondent bank might be the key risk factor to focus on.

upvoted 0 times

...

Jani

5 months ago

This is a tricky one. I think the jurisdiction of the respondent bank is the most important risk indicator to review, since that can expose the bank to higher AML/CFT risks.

upvoted 0 times

...

William

12 months ago

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

upvoted 0 times

...

Dallas

12 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.

upvoted 0 times

Shannan

11 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.

upvoted 0 times

...

Carmela

11 months ago

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

upvoted 0 times

...

Santos

11 months ago

D) The major business activities of the respondent bank.

upvoted 0 times

...

Hyman

11 months ago

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

upvoted 0 times

...

Penney

11 months ago

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

upvoted 0 times

...

Gladis

12 months ago

A) The management and ownership of the respondent bank.

upvoted 0 times

...

Lamar

1 year ago

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

upvoted 0 times

...

Mel

1 year 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?

upvoted 0 times

...

Artie

1 year ago

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

upvoted 0 times

...

Odette

1 year 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.

upvoted 0 times